At PMI James River, we prioritize protecting our clients and their assets, as well as our contractor partners. As part of this risk management strategy, we require all contractors to name PMI James River as an Additional Insured on their General Liability insurance policies, and preferably on other insurance policies as well. But why is this requirement so important? Let’s dive in...
Protecting Property Managers from Liability
Adding your property manager partner as an Additional Insured helps shield both the property manager and the contractor from potential legal claims stemming from the contractor’s work.
When a contractor names the property manager as an Additional Insured, the property manager gains extended coverage under the contractor’s policy. This means if a claim or lawsuit arises due to contractor negligence, the property manager is included in the protection.
Why does this matter? Property managers oversee numerous contractors and operations, often without direct involvement in specific tasks. Without Additional Insured coverage, a property manager could face liability for incidents that occurred under the contractor’s scope of work, even when they had limited control over the situation.
Benefits for Contractors
Requiring an Additional Insured endorsement benefits contractors too. Here’s how:
- Stronger Business Relationships: Many property management contracts mandate Additional Insured coverage. By meeting this requirement, contractors align with industry standards, fostering trust and repeat business opportunities.
- Streamlined Claims Handling: If a claim arises related to the contractor’s work, both the contractor and property manager are protected under the same policy. This reduces disputes over who should pay for legal costs or damages. Such coverage also minimizes the risk of conflicts between insurance carriers, creating a clearer path to resolution in the event of a claim.
- Mitigating Financial Risks: Extending coverage to the property manager minimizes conflicts between insurance carriers, helping avoid costly lawsuits and shared legal liabilities. Contractors who take this step demonstrate a proactive approach to risk management, limiting their exposure to financial setbacks.
The Process: Adding PMI James River as Additional Insured
Fortunately, adding a property manager as Additional Insured is usually a simple process:
- Straightforward Procedure: Most insurance carriers allow contractors to add Additional Insureds through a simple online form or by contacting their insurance agent.
- Quick Turnaround: Endorsements are typically issued within 1–2 business days.
- Low to No Cost: Many carriers offer this service at no additional charge, though some may charge a nominal fee to process the endorsement.
PMI James River's Listing Requirement
For PMI James River, contractors must explicitly name PMI James River. The preferred endorsement is "River Property Investments, LLC dba PIMI James River and its officers, directors, partners, agents, employees, parents, affiliates, subsidiaries, clients, and managed properties, 1806 Summit Ave., Ste. 300-113, Richmond, VA 23230".
Some insurances don't have enough space in which case "James River Property Investments, LLC, dba PMI James River, 1806 Summit Ave., Ste. 300-113, Richmond, VA 23230" will suffice.
: James River Property Investments, LLC, dba PMI James River, 1806 Summit Ave., Ste. 300-113, Richmond, VA 23230.
Additional Resources
Needless to say, there are a lot of additional resources on the internet about the importance of additional insured endorsements. To make it easier for you, we recommend these two easy-to-read resources:
- Everything You Need to Know About Additional and Named Insureds (Hiscox)
- Additional Insured Endorsement (Procore)
Final Thoughts
Requiring contractors to name PMI James River as Additional Insured isn’t just about protecting property managers—it’s about fostering a collaborative, secure environment for all parties involved. This practice ensures clear accountability, reduces risks, and strengthens professional relationships. Contractors taking this extra step not only meet industry standards, but also protect their own businesses from unnecessary liabilities. It’s a simple yet crucial measure that benefits everyone, keeping operations smooth and partnerships thriving.
