Workers’ Comp for Property Managers: All You Need To Know

How Workers’ Comp for Property Managers covers accidents

If a property manager is involved in an office accident, such as if a maintenance guy falls down the stairs while inspecting a property, or a leasing agent cuts themselves on a paper cutter, workers’ compensation insurance will protect both the company and the employee while they recover. 

Workers’ comp for property managers can cover medical costs and lost wages for the injured worker, as well as any legal fees that may arise from a lawsuit filed by an employee due to negligence or other reasons. 

Workers’ compensation insurance is also required by law in most states, so it's important to purchase this type of coverage if you don't already have it. 

Which type of Insurance can Property Managers carry to cover accidents?

You'll want to ensure you have the proper workers’ comp for property managers in place, before an accident occurs, so that you are covered in case of any incidents.

Property managers should also consider carrying commercial general liability insurance to protect them from a variety of accidents that could occur to customers or others in the office, such as slips and falls, fires, or even injuries caused by employees.

Liability insurance can protect property managers against claims resulting from damages to people or property. It covers the cost of medical fees, legal costs, settlements, and payouts that arise from an accident.

Understanding Workers’ Comp Class Codes for Property Managers 

Workers’ comp class codes are essential for figuring out how much you should be paying for your insurance. The National Council on Compensation Insurance (NCCI), has a database of all job roles and descriptions in every state. 

Every role is given a 4 digit class code to use as an easy reference to look up the details for that role. Once a year, they analyze the previous claims for each code and calculate the risk rating. This helps the insurance companies figure out the insurance premiums.

To get a handle on your workers' comp insurance costs, you need to start with finding out your class code. The NCCI offers resources that are pretty straightforward and can help you identify your specific code.

Property management companies typically fall under two class codes: 9015, for maintenance-related work, and 9012, which covers clerical tasks, sales, and similar roles.

However, it's important to be aware of common issues that crop up with these class codes.

Maintenance Class Code 9015:

This property management code is for light maintenance work like painting between tenants or changing locks. 

But if your team is doing more heavy-duty work like roofing or major renovations, you’d need a class code that reflects that. Sticking with 9015 for these tasks could leave you 'on the hook' for any injuries that aren't covered under this code.

Clerical Class Code 9012: 

Unlike most industries where office staff fall under class code 8810, in property management, they are classified under 9012. Misclassifying your office staff under 8810 instead of 9012 can lead to unexpected costs during an audit.

Managing Subcontractors in Property Management

As a property manager, you probably contract out tasks like heavy-duty maintenance, painting, and electrical work. However, it's important to manage your subcontractors wisely to protect your business from potential liabilities.

Consider Direct Payment Arrangements

The smartest business decision is to refer the subcontractors to the tenants and to have them paid directly by the tenants. This is what most successful property management companies do. 

For example, if the property needs extensive renovations, you could refer them to a trusted handyman in the area. This would solve the property owner’s problem while also protecting you from liability. 

Ask for Certificates of Insurance (COIs)

What if you decide to hire subcontractors directly? That might make the owner feel calmer and more taken care of. However, if a subcontractor gets injured while working on your property and they don't have proper insurance, your business could end up being responsible for their injuries - a risk you don't want to take.

To make sure you’re fully protected, make sure every subcontractor provides a Certificate of Insurance (COIs). COIs serve as proof that the subcontractors have their own insurance coverage.

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Multi-State Workers’ Comp for Property Managers  

Imagine this scenario: You have properties in both State A and State B. An employee working on a property in State B gets injured, but your workers' comp policy is tailored only for State A. This can lead to complicated and potentially costly insurance claims, not to mention the legal headaches.

To avoid such situations, make sure that your workers' compensation policy is valid in all the states where the properties are located. Also, it’s important to keep abreast of state laws in each location. This will help you manage potential claims efficiently and keep your business compliant with legal requirements across different states. 

Workers' Comp Property Management Insurance Quotes

When looking for workers’ compensation insurance quotes, it’s important to read the fine print so you know what is and isn't covered by your policy.

Some policies may only cover accidents that occur on the property, while others may also cover injuries that happen away from work. 

Choosing a provider of workers’ comp for property managers that offers instant online quoting is the best way to get your insurance approved quickly.

Get Workers’ Comp for Property Managers Today!

Kickstand Insurance offers instant quotes on property management workers’ comp insurance policies across the majority of the United States. Explore options with our expert team - get an instant quote today!