Insurance Requirements · United States · 2026
Do property managers need insurance?
Yes — in nearly every U.S. state. Most states require licensed property managers to carry Professional Liability / E&O, Workers' Compensation before they can operate. Here's what to buy, what it costs, and which carriers serve the trade.
01
Coverage checklist
| Coverage | Requirement | Annual cost |
|---|---|---|
| Professional Liability / E&OPL/E&O | Required | $350.00–$1000.00/yr |
| Workers' CompensationWC | Required | $1000.00–$3000.00/yr |
| Cyber LiabilityCyber | Recommended | $350.00–$1000.00/yr |
| Business Owner's PolicyBOP | Optional | $400.00–$1200.00/yr |
| Commercial AutoCA | Optional | $600.00–$1400.00/yr |
| Commercial PropertyCP | Optional | $400.00–$1400.00/yr |
| General LiabilityGL | Optional | $300.00–$650.00/yr |
SOURCE · National carrier filings · BLS labor statistics · Updated 2026
02
Cost breakdown
Professional Liability / E&O
$350.00–$1000.00/yr
Cost factors
- ·Client volume
- ·Contract values
- ·Industry
Covers claims of professional negligence, errors, or omissions.
Workers' Compensation
$1000.00–$3000.00/yr
Cost factors
- ·Payroll
Required once you have employees.
Cyber Liability
$350.00–$1000.00/yr
Cost factors
- ·Client data stored
- ·Payment info handled
Relevant if you handle sensitive client data or payment information.
Business Owner's Policy
$400.00–$1200.00/yr
Cost factors
- ·Office
If you lease an office.
Commercial Auto
$600.00–$1400.00/yr
Cost factors
- ·Client visits
If you travel to clients and personal policy excludes business use.
Commercial Property
$400.00–$1400.00/yr
Cost factors
- ·Office ownership
If you own or lease an office.
General Liability
$300.00–$650.00/yr
Cost factors
- ·Office
- ·Client meetings
Useful if you meet clients on site or keep an office.
03
Best carriers for property manager
Embroker
AM Best: A
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Hiscox
AM Best: A
professional-liabilitygeneral-liabilitycyber-liabilitybusiness-owners-policy
NEXT Insurance
AM Best: A-
general-liabilityworkers-compensationcommercial-autobusiness-owners-policy
Simply Business
AM Best: A
general-liabilityprofessional-liabilityworkers-compensationcommercial-auto
Thimble
AM Best: A
general-liabilitycommercial-autoinland-marineworkers-compensation
04
Requirements by state
| State | Coverage | Required? | Notes |
|---|---|---|---|
| Alabama | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Alaska | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Arizona | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Arkansas | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| California | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Colorado | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Connecticut | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Delaware | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| District of Columbia | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Florida | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Georgia | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Hawaii | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Idaho | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Illinois | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Indiana | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Iowa | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Kansas | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Kentucky | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Louisiana | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Maine | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Maryland | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Massachusetts | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Michigan | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Minnesota | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Mississippi | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Missouri | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Montana | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Nebraska | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Nevada | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| New Hampshire | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| New Jersey | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| New Mexico | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| New York | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| North Carolina | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| North Dakota | Workers' Compensation | Required | Statutory — Workers' comp is purchased through the state fund (monopolistic state). |
| Ohio | Workers' Compensation | Required | Statutory — Workers' comp is purchased through the state fund (monopolistic state). |
| Oklahoma | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Oregon | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Pennsylvania | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Rhode Island | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| South Carolina | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| South Dakota | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Tennessee | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Texas | Workers' Compensation | Optional | Statutory — Texas is the only state where workers' comp is optional for private employers. |
| Utah | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Vermont | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Virginia | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Washington | Workers' Compensation | Required | Statutory — Workers' comp is purchased through the state fund (monopolistic state). |
| West Virginia | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Wisconsin | Workers' Compensation | Required | Statutory — Required once you have W-2 employees; statutory limits apply. |
| Wyoming | Workers' Compensation | Required | Statutory — Workers' comp is purchased through the state fund (monopolistic state). |
05
Frequently asked questions
Do property managers need insurance?+
Yes. The main policies property managers need are professional liability and workers' comp.
How much does property manager insurance cost?+
A typical property manager can expect to pay general liability runs $300–$650 per year, professional liability $350–$1000, workers' comp $1000–$3000 depending on payroll, and commercial auto $600–$1400 per vehicle. Total annual premiums for a small operation usually range from $1,500 to $8,000 depending on coverage choices, revenue, and number of employees.
Is workers' comp required for property managers?+
Yes, in nearly every state — once you have W-2 employees. Texas is the only state where workers' comp is optional. Even sole-proprietor property managers often carry it because the physical nature of professional-services work makes injuries common.
What does general liability cover for a property manager?+
General liability covers third-party bodily injury and property damage — for example, if a customer is injured on site or you accidentally damage a client's property. It does not cover your own injuries or professional errors (those need workers' comp and professional liability).
Does my personal auto insurance cover my property manager business?+
No — personal auto policies typically exclude business use. If you drive a vehicle for work (transporting equipment, visiting clients, making deliveries), you need a commercial auto policy.
06
Related professions
Other professional services businesses
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