Property Managers Insurance
Protect your property management business from tenant claims, maintenance disputes and professional liability with specialist cover.
Get in touchWhat is property managers insurance?
Property Managers insurance is a specialist policy designed to protect finance and property professionals from the risks of advising clients, managing transactions and handling sensitive financial data. It typically includes professional indemnity, public liability and cyber liability.
Working in finance and property involves significant professional liability. Incorrect valuations, compliance failures and advisory errors can lead to substantial claims from clients, lenders and regulators.
Find cover options from specialist insurers who specialise in covering finance and property businesses, so your cover reflects the specific risks and regulatory requirements of your profession.
Professional Indemnity
Covers claims arising from management errors, maintenance failures or service charge disputes.
Public Liability
Covers injury or property damage claims at properties you manage.
Employers Liability
Required by law if you employ anyone, covering employee injury or illness claims.
Cyber Liability
Covers data breaches involving tenant and leaseholder personal data.
Who needs property managers insurance?
Block management companies
Managing residential blocks and leaseholder services
Estate management companies
Managing housing estates and communal areas
Commercial property managers
Managing office buildings, retail parks and industrial estates
Holiday let managers
Managing short-term rental properties for owners
Regulatory requirements for residential property managers
Residential property managers must comply with the Consumer Rights Act 2015 and, if collecting deposits, register them with a government-approved scheme within 30 days. Property managers must also comply with the Tenant Fees Act 2019, which restricts charges and requires transparency. Whilst property managers are not required to hold FCA authorisation (unless they also provide lettings agent services and advertise properties), they are regulated under consumer protection law and the lettings agent regimes.
Property managers must join a Client Money Protection scheme if they collect deposits or rent. This is a legal requirement under the Consumer Rights Act 2015. All CMP schemes require professional indemnity insurance as a condition of membership. Managers also face liability under the Premises Standard (energy efficiency regulations) and must ensure properties comply with safety regulations including fire safety (Grenfell reforms).
Commercial property managers face different regulatory exposure. They must ensure they comply with the Health and Safety at Work Act 2015 and are responsible for ensuring common areas are maintained safely. Claims often arise from failures to carry out repairs, negotiate service charges, or maintain adequate insurances on the building.
How much does property managers insurance cost?
£400 – £1,000 per year for managing up to 50 properties; property managers handling 100+ units may pay £1,200 – £2,800
Real claims: what property managers insurance covers
A residential property manager failed to register a tenant deposit with a government-approved scheme within 30 days. The tenant claimed compensation of three times the deposit amount (£1,800), as required by the Housing Act 2004.
Professional indemnity covered the statutory compensation and the cost of defending the claim through the deposit scheme's dispute resolution process.
£2,000 total — £1,800 statutory compensation, and £200 legal and administration fees
A property manager failed to carry out urgent repairs to a heating system in a residential property during winter. The tenant suffered water damage and mold growth due to condensation. Remedial costs were £9,500, and the tenant claimed damages for breach of the implied covenant to repair.
Professional indemnity covered the settlement and the cost of legal defence, including expert testimony regarding the manager's duty to repair.
£10,800 total — £9,500 remedial costs settlement, £800 legal fees, and £500 expert fees
A commercial property manager failed to ensure adequate insurance was in place on a building. When a fire occurred, the building's insurance was found to be insufficient, and the property owner incurred uninsured losses of £35,000.
Professional indemnity covered the claim and the cost of legal defence demonstrating the extent of the manager's duties.
£37,200 total — £35,000 loss settlement, £1,600 legal fees, and £600 insurance expert fees
WHY CECIL
Built differently.
Cover for property managers risks
Finance and property work carries significant professional liability. Cecil finds insurers who cover property managers specifically and understand the regulatory environment.
Regulatory compliance support
Professional indemnity covers the costs of defending regulatory complaints and investigations. Cecil ensures this is included in your policy.
Cyber protection for financial data
Property Managers handle sensitive client data. Cecil makes sure your policy includes cyber liability to protect against breaches and their consequences.
Competitive quotes from specialist insurers
Get your cover options from finance and property insurance specialists. Cover that reflects your profession, not a generic commercial policy.
Common questions about property managers insurance
Do property managers need professional indemnity insurance?
Professional indemnity is essential for finance and property professionals. It protects you if a client claims your advice or work caused them a financial loss.
What level of professional indemnity do property managers need?
Cover levels depend on your regulatory requirements and the value of transactions you handle. Cecil helps you choose the right level for your profession.
Do property managers need cyber insurance?
Given the volume of sensitive data handled by finance and property professionals, cyber liability is strongly recommended. It covers breach notification, investigation and regulatory fines.
Does property managers insurance cover regulatory complaints?
Yes, professional indemnity covers the costs of defending complaints from regulators, ombudsmen and professional bodies.
Do property managers need public liability insurance?
If clients visit your office or you visit properties and sites, public liability covers injury and property damage claims. Many clients require it.
Is professional indemnity insurance a legal requirement for residential property managers?
If your property management business collects rent or deposits, you must be a member of a Client Money Protection scheme, which requires professional indemnity insurance. This is a legal requirement under the Consumer Rights Act 2015.
What does professional indemnity cover for property managers?
It covers claims arising from failures to carry out repairs, incorrect deposit handling, breaches of tenancy law, failures to maintain required insurances, and breach of fiduciary duty to landlords. It also covers claims from tenants and landlords alleging negligent management.
Are property managers liable for repairs under the implied covenant to repair?
Yes. If you manage a residential property, you have a duty to carry out necessary repairs within a reasonable timeframe. Failure to do so may breach the implied covenant to repair, and tenants can claim damages. Professional indemnity covers these claims.
Do property managers need to ensure properties comply with safety and energy efficiency standards?
Yes. You must ensure rental properties comply with the Premises Standard (EPC rating requirements), fire safety regulations (Grenfell reforms), and electrical safety standards. Failures to comply can result in claims from tenants and regulatory enforcement. Professional indemnity covers these claims.
What should a property manager do if a landlord instructs them to charge a prohibited fee?
Refuse the instruction. If you charge prohibited fees under the Tenant Fees Act, you are automatically liable to refund them with statutory compensation. Professional indemnity covers this liability if you have unknowingly charged prohibited fees, but you have a duty to understand the law before taking instructions.
Interested in Property Managers insurance?
We will be in contact when Cecil launches.