Property Manager Insurance
Hi BP - I just had a potential property manager tell me that they don't carry insurance because they hire out maintenance and repairs. I'm new at this, but this seems like a giant red flag. If I were a property manager, I would want some basic liability coverage at a minimum to protect me from claims from both tenants (wrongful eviction, discrimination, etc.) and property owners (breach of contract, etc.).
I also want them to have coverage because if something really bad happened, like a major injury or death to a tenant, I imagine that their family would start suing everybody (owners, manager, contractor, etc.) and would go hardest after those who they think are most capable of generating a payout, i.e. the insured parties. Am I on track with this line of thinking?
I assume those of you who hire out PM ask to see proof of insurance? What exactly should I be looking for here in terms of their coverage types and amounts?
Thanks much!