Liability
Liability is legal responsibility for injury or damage to someone else. If a guest is hurt at a property and the owner or manager is found liable, they are responsible for the guest's medical costs, legal fees, and any settlement or judgment.
By Andrew Bate, Co-founderReviewed by Stuart BateUpdated
Why this matters for property managers
Property managers carry liability on two fronts: for what happens at managed homes and for their own professional decisions. Confusing the two — or assuming the owner's policy covers the first — is the most common gap in a management company's insurance.
Related terms
Browse every term in the insurance glossary for property managers.
Liability: common questions
Who is liable when a guest is injured at a managed property?
Potentially both the owner and the manager, depending on the cause and the management agreement. Both need liability coverage that does not exclude short-term rental use.
Does the guest's own insurance matter?
Guest travel insurance may cover the guest's medical costs, but it does not shield the owner or manager from a liability claim.
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