What type of insurance protects property managers against potential lawsuits from tenants?

Errors and Omissions Insurance is specifically designed to protect professionals, including property managers, against potential lawsuits arising from mistakes or oversights in the performance of their duties. This type of insurance can cover legal fees, settlements, and damages that may arise from claims made by tenants, such as allegations of negligence or failure to uphold lease agreements.

In the context of property management, having this coverage is crucial because it addresses risks inherent in managing properties, such as claims related to mismanagement, failure to disclose property issues, or allegations related to tenant rights violations. This protection allows property managers to operate their business with an added layer of security, knowing they are safeguarded against claims that could otherwise result in significant financial losses.

The other options, while relevant to other aspects of insurance, do not specifically cater to the legal liabilities that property managers face. Home insurance protects individual homeowners, automobile insurance covers vehicles and related liabilities, and rental insurance is typically taken out by tenants to protect their personal belongings rather than to safeguard property management professionals from legal claims.