Investor · Bakersfield, CA · Member since 2015 · 161 posts · 46 votes
I set up my LLC and am just about ready to start investing in 2-10 unit properties, BRRRR style. However, I'm in the world of insurance and not sure if general liability is best or professional liability, or something else. It seems most companies are recommending professional since I don't have an office that would require general liability. What do you use? Each of my properties will have their own policies tied to the property, this is just for the business.
It's not if one is better than the other. Each covers different exposures, just like your Auto policy is different from your Homeowners policy. Both are needed if you have the exposure.
Here are some scenarios,
*If you are managing properties for others, then you should have an E&O policy.
*If you have an office location that is not located at a location that you own, then it would be a good idea to have a General Liability policy for your office location.
*If your office location is at your home, and you do not plan to have tenants come to your home, most landlords in this situation would not buy a separate GL policy and only have the Property and GL policy on their rentals
@Jason Bott thank you for that great reply! I'm going to run this out of my home office with a property manager taking care of daily operations and collecting rent.