What kind of insurance should a property manager carry in Arizona?

Property managers in Arizona should carry professional liability insurance and general liability insurance to protect themselves and their business from potential risks and claims.

Professional liability insurance, also known as errors and omissions insurance, covers the property manager against claims of negligence, mistakes, or failures in providing professional services. This is crucial in the property management field, where decisions regarding tenant relations, property maintenance, and financial transactions can lead to disputes or legal actions.

General liability insurance complements this coverage by protecting against claims of bodily injury, property damage, and personal injury occurring on the managed property. This type of insurance safeguards the property manager from lawsuits that may arise from these incidents, which could result in significant financial loss.

Together, these two types of insurance address the unique risks associated with property management, making them essential for anyone in this profession. Other options, such as homeowner's insurance and renters insurance, do not provide the intended coverage necessary for property management activities, since they are designed for different purposes and do not adequately protect the property manager's professional interests. Liability insurance only, while important, does not cover the comprehensive range of potential issues that professional liability insurance addresses, thus underscoring the need for both forms of insurance.