Property Management Company Insurance in Colorado

Property managers in Colorado face risks that can create financial and legal liabilities. Some of these risks include:

• Vacancy Risk: This is the risk that a management company may lose rent from tenants who are unable or unwilling to pay.
• Liability Risk: Property management companies can be held liable for the actions of their employees, tenants, and contractors on their property.
• Reputational Risk: Property managers are responsible for maintaining a good reputation in the community and among landlords and tenants. This can be difficult to achieve when dealing with tenant issues or litigation.

These risks can be minimized by purchasing a comprehensive insurance policy that covers the property manager for any liabilities that may arise.

At 3R Insurance Agency, we are dedicated to helping property management companies in Colorado get the best insurance packages that fit their needs. We have an experienced team of agents and brokers who specialize in finding the best policies for our clients. 

Our comprehensive insurance industry knowledge allows us to provide you with quotes for coverage from multiple insurance companies customized to your unique situation. From general liability and workers’ compensation to property damage, employee dishonesty, and more, our agents can find the perfect coverage for your business. 

Contact us today to learn more about how we can help you get the best insurance package for your company. With 3R Insurance Agency, you’ll be sure to have the protection you need in case of a crisis.

All property management companies in Colorado should have a comprehensive insurance policy to protect against potential liability. Property managers involved in the following activities should consider purchasing some kinds of insurance policies:

• Managing any amount of properties
• Contracting services for some rental property
• Leasing or renting real estate properties

Legal disputes are frequently encountered in this industry, and neglecting to have adequate safeguards can leave your business vulnerable to avoidable risks. 

Moreover, your clients in Colorado rely on you to possess the appropriate insurance coverage to safeguard their most valuable asset.

Having the right property management insurance policy in Colorado not only encourages clients to pick you as their property manager but also shows your professionalism and diligence when seeking new business opportunities.

General liability insurance is an essential coverage for property management companies in Colorado. It provides protection from claims of bodily injury, personal injury, and property damage resulting from business operations or services. This type of insurance is intended to cover things such as legal fees, medical bills, replacements, and repairs.

Typically, general liability insurance covers the following:

• Reputational Harm
• Property Damage
• Copyright Infringement
• Bodily Injury
• Advertising Injury
• False Arrest
• Medical Payments Liability for Products and Completed Operations.

With this insurance coverage, you can rest assured that your business is protected from potential risks. In addition, this protection will keep your clients confident that their investments are insured against any loss or damage.

Property management companies in Colorado often consider errors and omissions insurance, also known as professional liability insurance, as an essential form of coverage. This insurance protects property managers in the event of lawsuits arising from errors or mistakes made during their professional services.

While professional liability insurance is commonly associated with the service industry, it is equally relevant for commercial property management companies. This type of insurance covers the legal expenses incurred by property managers when they have made contract errors or provided inaccurate information.

More specifically, this professional insurance protects property managers from:

• Omissions
• Negligence
• Inaccurate advice
• Errors in the form of service

Not having professional liability insurance exposes property management companies to significant financial risks related to client allegations. Without proper insurance coverage, these cases can result in substantial out-of-pocket expenses, potentially costing thousands of dollars. 

Therefore, property management companies must consider obtaining this coverage to safeguard themselves.

Property management Companies in Colorado must also consider tenant discrimination insurance to protect against any allegations of unfair or illegal practices. Such claims can be damaging and costly for a property management business, so having the right level of coverage is essential.

Tenant discrimination insurance protects from potential damage due to alleged discrimination based on the following:

• Sexual orientation
• Disability
• Nation of origin
• Sex
• Religion
• Race
• Ethnicity
• Age

It will cover the cost of legal fees and other expenses incurred in defending such claims. Furthermore, this type of insurance covers any compensation awarded should an adverse judgment occur.



Property management companies can gain peace of mind by investing in tenant discrimination insurance, knowing that their businesses are protected from risks associated with these types of claims.

Another important type of insurance for property management companies in Colorado is cyber liability insurance. This coverage protects against potential losses due to data breaches, cyber extortion, and other online threats.

As technology becomes increasingly integrated in the daily operations of a property management company, the risk of data theft or malicious hacking attacks grows. Cyber liability insurance can help protect your business from these risks by covering legal fees, fines, and any financial losses resulting from cyber-attacks.



Furthermore, this type of policy will cover damages caused by third parties who fail to comply with data protection regulations. Investing in cyber liability insurance is essential for all property management companies dealing with sensitive customer information online.

Workers' compensation insurance is mandatory for all employers in Colorado and provides benefits to employees who become injured or ill while on the job. 

It covers medical expenses, lost wages, rehabilitation costs, and other associated costs. It also helps protect employers from being held liable for employee accidents or injuries that occur in the workplace.

Property management companies should carry adequate workers' compensation insurance coverage for all employees, as failing to do so could result in a significant financial penalty from the state of Colorado.

Additionally, this type of policy can help protect property managers from costly lawsuits if an employee injured on the job decides to take legal action against them.

Business personal property insurance covers the physical belongings of a business, like furniture, equipment, and supplies. It can also provide coverage for lost income resulting from property damage caused by theft or vandalism. This type of policy is essential for any property management company that owns expensive items such as computers, printers, cameras, or other specialized tools.

In addition to protecting against theft and vandalism, business personal property insurance will provide compensation for damages caused by storms, floods, and fire. Furthermore, it offers additional protection if a customer’s property is stolen while in the care of the manager. 



Investing in this type of coverage is crucial for any property management company looking to protect its assets and ensure financial security.

The cost of insurance for a property management company in Colorado will vary depending on the type and amount of coverage needed. The following are the factors that determine the cost of insurance:

• The number of employees and their job duties
• The size and value of the property management company’s assets
• The type and amount of coverage required
• The location of the business
• Recent claims history
• The deductible chosen for each type of coverage
• Different types of losses covered in the policy

The best way to determine the exact cost of a property management insurance policy is to speak with an experienced insurer such as 3R Insurance Agency, which can review your specific needs and provide an accurate quote.

On average, the cost of an insurance policy for a property management company in Colorado is between $50 to $100 a month. The exact cost will depend on the factors mentioned above as well as any discounts available from the insurer.

There are a few ways that property management companies in Colorado can lower their insurance premiums. They include:

• Opting for higher deductibles: If you are willing to assume more risk in exchange for a lower premium, opting for higher deductibles may be an option.
• Maintaining a good claims history: A company with no prior claims is likely to get discounts and lower premiums than a company with many past claims.
• Bundling policies: Many insurers offer discounts for customers who bundle their property management insurance with other types of coverage, such as liability, professional indemnity, and workers’ compensation.
• Security measures: Insurers may also reduce premiums if the property management company has taken steps to increase security, such as installing alarms, CCTV cameras, and deadbolt locks.
  

3R Insurance Agency provides free, no-obligation quotes for property management companies in Colorado. Comparing different insurance policies is the best way to ensure you get the most comprehensive coverage at an affordable rate. 

We understand that there’s a lot to consider when finding the right insurance policy for your business, which is why our experienced agents are here to help. 

Contact us today to find the best coverage for your property management company in Colorado at the right price.