Business Insurance > Property Managers Error's & Omission's Liability

Property Managers Error's & Omission's Liability

An apartment developer assigned its rights to manage the apartments and collect rents and utility charges from tenants to a commercial property management company. After the management company raised the rents several times, the local apartment tenants' association filed suit against the management company alleging that it had negligently managed the apartments (miscalculating utilities, renting to loud and boisterous tenants, etc.) The association sought unspecified damages. The case was favorably resolved, but defense fees were incurred.
The owners of a mall retained a commercial property management company to manage the mall and collect rent from the tenants. The anchor tenant of the mall, a large clothing retailer, sued the mall owner and management company alleging that it had been overcharged nearly $175,000 in rent due to the management company's negligent miscalculation of the floor space it rented. The retailer requested the return of this amount, plus interest. The case was settled for a total payment of over $150,000 to the retailer.