Property Management E&O for commercial landlords
Errors & omissions coverage for property owners and managers — claims from leasing mistakes, maintenance oversights, tenant disputes, and the day-to-day decisions that can turn into a negligence lawsuit.
What it covers
- Claims of negligent maintenance or repairs
- Leasing and tenant-screening errors
- Fair-housing and discrimination allegations
- Mishandled security deposits and tenant funds
- Failure to maintain required insurance or code compliance
- Defense costs and legal fees for management claims
Who it’s for
- Owners who self-manage their commercial properties
- Property management companies and on-site managers
- Owners with employees who lease or maintain the building
- Anyone whose management decisions could be alleged as negligent
Why CCA
- Covers the management-decision exposures GL doesn't
- Defense costs included — these lawsuits are expensive to defend
- Programs for both self-managed owners and management firms
Common questions about property management e&o
Property management errors & omissions (E&O) covers claims that your management of the property was negligent — a missed repair that caused damage, a leasing mistake, a fair-housing allegation, or mishandled tenant funds. It addresses the professional-decision exposures that general liability doesn't cover.
If you make the management, leasing, and maintenance decisions yourself, your decisions can still be alleged as negligent — and a lawsuit is expensive to defend even if you win. Self-managing owners often carry E&O for that defense coverage. We'll help you decide based on your operation.
General liability covers bodily injury and property damage to third parties. E&O covers financial loss from a negligent professional act or omission in managing the property — the kinds of claims that don't involve a physical injury but still cost you money. Many landlords need both.
Many property management E&O policies include coverage for alleged fair-housing violations or discrimination in leasing, including defense costs. These claims are increasingly common and expensive, so we make sure the policy form addresses them.
If a property management company runs the building, they should carry their own E&O and name you additional insured. We help you verify their coverage and decide whether you also want your own management-liability protection as the owner.
No — tenant and visitor injuries are a general liability / premises liability matter. E&O covers the financial-loss claims from how the property is managed, not physical injuries. The two coverages complement each other.
Common limits are $1M per claim / $2M aggregate for property management E&O. The right limit depends on the size of the portfolio, number of tenants, and the management operation's complexity. We size coverage to your real exposure.
Premium reflects the number of units or square footage managed, the types of properties, revenue from management activities, and claims history. We document your operation accurately so the premium reflects real exposure.
Most commercial building owners pay $750–$2,500 a year for base Lessor's Risk Only, with the full program (LRO, property, equipment breakdown, umbrella) running $2,500–$9,000. Cost depends on building value, construction, tenant mix, and location. We quote the full program in about 15 minutes.
Yes. Contractors Choice Agency is licensed in all 50 states and writes lessor's-risk and commercial property programs from the Sun Belt and Texas to the Northeast, Midwest, and West Coast.
About 15 minutes for a standard program. Once bound, we turn around certificates of insurance and additional-insured endorsements for lenders, tenants, and partners — usually within minutes.
LH-1 is the ISO class code for a Lessor's Risk Only building — a commercial property leased to tenants where the owner's only occupancy is as a landlord. Correct LH-1 classification keeps premium fair and ensures claims aren't denied for misclassification.
Yes — that is the central purpose of Lessor's Risk Only. If a tenant's operations cause a fire that damages the building or other tenants, LRO covers the owner's property loss and liability. Generic policies often mishandle this exact exposure.
Standard commercial property excludes internal breakdown. We add equipment-breakdown (boiler & machinery) coverage so failed HVAC, boilers, chillers, elevators, and electrical panels are covered, including the resulting business-interruption loss.
Most carry $1M/$2M on liability with a $2M–$5M umbrella, and property limits equal to the building's full replacement cost. We size limits to your building value, tenant exposure, and lender requirements.
If you or your maintenance crew drive company vehicles between properties, yes — personal auto excludes business use. We also add hired/non-owned coverage if employees drive personal vehicles for property work.
Often, yes. We have excess-and-surplus (E&S) and specialty markets for buildings with loss runs, high-hazard tenant mixes, older construction, or other exposures that standard markets decline.
Yes — your lease should require every tenant to carry general liability and name the building owner additional insured on a primary, non-contributory basis. We provide a sample lease clause and help track certificates.
You reach a person with context, not a queue. We respond within 2 hours, help you document the loss, and manage the claim with the carrier so it's paid correctly and your building keeps operating.
Commercial property leased to tenants has a specific risk profile that generic carriers exclude or misprice. A specialty broker knows the LH-1 class code, the markets that write each tenant mix, and how to manage a tenant-caused claim.
Pair it with related coverage
Ready to protect the building you own?
Get a 15-minute quote from specialists who understand commercial property — LRO, commercial property, premises liability, equipment breakdown, and umbrella.