Property Management Company Insurance in Michigan

The following types of businesses may need property management insurance in Michigan:

• Apartment complexes
• Residential and commercial landlords
• Real estate agents and brokers
• Single-family home properties
• Multi-family housing facilities, such as duplexes or townhouses
• Student housing
• Senior communities and assisted living properties
• Rental property owners' associations
• Vacation/short-term rental companies
• Property management firms
• HOA Management Companies
• Co-op Housing Organizations
• Mixed-use commercial and residential buildings
• Retail and mixed-use centers
• Storage facility owners and operators

Other businesses that may need property management insurance in Michigan include landscaping companies, pest control companies, security service providers, and general contractors.

The right insurance policy will provide protection in the event of a claim.

Commercial General Liability Insurance 

Property management companies in Michigan have an important responsibility for overseeing the well-being of rented properties. To ensure that these companies are fulfilling their responsibilities, carrying commercial general liability insurance is essential.

This important protection helps guard against losses from occurrences such as legal defense fees, property damage and personal injury claims due to accidents or negligence. In its simplest form, this insurance helps guarantee that a property management company can perform the tasks required of them without risking significant financial repercussions.

Property Damage Liability Insurance

Property Management Companies in Michigan have to contend with the risk of being held liable for damage caused to a client's property. To protect themselves, it's important that they maintain proper insurance coverage, providing protection against uninsured damages, losses, and any claims filed against them. It pays to be proactive and make sure that the right policy is in place to cover all potential liabilities. A comprehensive insurance plan can significantly reduce financial burden if an incident occurs, helping prevent any costly legal bills or settlements.

Professional Liability/E&O Insurance

Professional Liability/E&O insurance is a necessary policy for these companies, as it protects against negligence claims resulting from mistakes or omissions on the company's part. This type of insurance pays claims arising from an alleged act, error, or omission that cause any loss or damage to another party and can be extended with additions such as fiduciary liability and cyber risk liability. By carrying Professional Liability/E&O coverage, property management companies gain a sense of security knowing they are not financially liable for any unforeseen costs caused by preventable errors in the course of their services.

Workers' Compensation Insurance

The state of Michigan requires employers to provide their employees with workers' compensation insurance. This type of policy helps cover medical expenses and lost wages if an employee is injured or becomes ill while on the job.

For property management companies, this means they are required to carry Workers’ Compensation Insurance in order to protect their employees should the need arise. This coverage can also help protect employers from costly lawsuits if an employee is injured as a result of their work.

Cyber Liability Insurance

As technology continues to evolve, more and more businesses are collecting sensitive data from their customers. This can include financial information such as credit card numbers or Social Security numbers.

Property management companies in Michigan should take extra precautions in protecting this type of data, which is why it's important to carry Cyber Liability insurance. This policy provides protection if there is a security breach, which can include the costs of legal fees and credit monitoring services for affected customers.

Employment Practices Liability Insurance 

Property management companies in Michigan should also consider obtaining Employment Practices Liability insurance to protect against allegations of wrongful termination, discrimination, harassment and other employment-related issues. This coverage helps pay for legal fees, settlements, and any other associated costs if an employee files a suit.

Fidelity Bonding 

Fidelity bonding provides insurance coverage for companies and their clients in the event of employee theft. Such coverage could be key to minimizing any potential losses from abuse of funds or property. It can also provide a layer of protection against legal costs incurred as a result of such unfortunate events.

Property management companies that invest in fidelity bonding receive not only peace of mind when it comes to protecting their assets but assurance for any clients whose resources are being held by the company.

Business Interruption Insurance 

Business interruption insurance plays an important role in the success of a business. It helps to protect property managers against losses they may incur due to service or supply disruptions, natural disasters, or other unforeseen events.

In addition to covering financial losses, Business interruption insurance also provides coverage for extra expenses incurred from running a business remotely and re-opening after such events. It is a vital policy to have in the event of any unforeseen circumstance that could put an organization’s operations at risk.

Flood and Earthquake Insurance 

Commonly overlooked, Flood and Earthquake insurance policies provide protection for property managers against costs associated with damage caused by natural disasters.

These types of policies can be tailored to the specific needs of a property management company, covering anything from replacing equipment or furniture to providing liability coverage in the event of an accident or injury.

Commercial Auto Insurance

Property management companies in Michigan require Commercial Auto Insurance to protect their vehicles and drivers while they are on the job. A good commercial auto policy will provide coverage for physical damage to the vehicle, damage due to an accident, and liability protection in case of property damage or injury. In Michigan, the minimum required coverage is $50,000 per person and $100,000 per accident.

Equipment Breakdown Coverage 

As a property management company in Michigan, it is important to understand the risks associated with your business and its assets. Equipment breakdown coverage from an insured provider can give you peace of mind, protecting you from losses due to unexpected equipment failure or breakdown.

This insurance provides coverage for repair costs, lost income and tenant relocation in the event of a mechanical breakdown. Rather than facing hefty expenses that cripple a business’s financial stability, proper insurance protects from potentially devastating financial losses. With adequate coverage in place, property management companies can continue their operations without the worry of unforeseen costs related to broken equipment and the disruption it brings to their tenants.

Property management insurance premiums will vary depending on the coverage limits, policy type, and company size. Property managers can generally expect to pay anywhere from a few hundred dollars per year for basic liability protection up to thousands of dollars for comprehensive coverage.

Since there are so many variables that go into calculating an insurance premium, the cost of property management insurance in Michigan can vary greatly depending on the following factors:

• The size of your business
• Type and amount of coverage
• Number of employees
• Type of tenants you manage
• Location and age of properties managed
• Amount of risk involved
• Availability and cost of insurance providers in your area.

Ultimately, the best way to get an accurate estimate for the cost of property management insurance is to speak with a knowledgeable and experienced agent who can provide you with a personalized quote. Other ways to lower your insurance costs include increasing your deductible, reducing unnecessary coverage, and shopping around for the best rates.

Having the right property management insurance can help safeguard your business from potentially catastrophic financial losses. With a comprehensive policy in place, you can rest assured that your Michigan property management company is protected if the unexpected happens.

Let the experienced Michigan property insurance agents at Oakland Insurance Agency help you get the coverage you need. Our knowledgeable agents will work with you to find the right policy for your business at the best rate available.



Don’t let an unforeseen incident put your Michigan property management company at risk – contact us today and get a free quote on property management insurance in Michigan.