Insurance is a non-negotiable requirement for property preservation companies. Clients — mortgage servicers, asset managers, and national preservation companies — require proof of insurance before assigning work, and the required coverage levels are often higher than other contractor trades. Understanding what you need, what it costs, and how to maintain compliance keeps your business eligible for contracts. (This page is about the coverage a vendor carries; for the preservation-of-property duty inside a property owner's own policy, see our insurance clause guide.)
Required Coverage Types
General Liability Insurance
General liability covers third-party bodily injury and property damage claims. Most preservation clients require $1,000,000 per occurrence and $2,000,000 aggregate minimum. This covers scenarios like a crew member accidentally damaging a neighbor's fence or a passerby tripping over equipment. Expect to pay $1,500-4,000 annually depending on revenue and claims history.
Workers Compensation
If you have employees (not independent contractors), workers compensation insurance is required by law in almost every state. Preservation work is classified as a moderate-risk trade, so rates are higher than office work but lower than roofing or demolition. Even if you only use subcontractors, some clients require you to carry workers comp or verify that your subs carry their own.
Commercial Auto Insurance
Preservation work requires driving between properties daily, often hauling equipment and debris. Personal auto policies do not cover commercial use. Commercial auto insurance covers accidents, cargo, and liability while vehicles are being used for business purposes.
Maintaining Compliance
Most clients require updated certificates of insurance (COIs) annually, and many require additional insured endorsements naming the client on your policy. Set up automatic COI distribution with your insurance agent, and track expiration dates — lapsed insurance can trigger immediate work suspension and loss of vendor status.
Ethreon maintains full insurance coverage across all required categories and provides current certificates to every client. Contact us to discuss partnership opportunities.
Contact EthreonRelated Services
Ethreon delivers these services with full documentation and compliance reporting:
Frequently Asked Questions
1What insurance do property preservation companies need?
Property preservation companies typically need general liability insurance, workers compensation (if they have employees), commercial auto insurance, and often errors and omissions (E&O) coverage. Some clients also require an umbrella policy for additional liability protection.
2What are the minimum insurance limits for preservation contractors?
Most servicers and national vendors require $1,000,000 per occurrence and $2,000,000 aggregate for general liability. Commercial auto minimums are typically $1,000,000 combined single limit. Workers compensation must meet state statutory requirements.
3Do property preservation vendors need E&O insurance?
Errors and omissions insurance is not always required, but many larger clients and national vendors request it. E&O covers claims arising from professional mistakes — such as a missed hazard during an inspection or incorrect winterization that leads to pipe damage.
4Is workers compensation required for property preservation?
If you have employees, workers compensation is required by law in nearly every state. Even companies using only subcontractors may need to carry workers comp or verify that each subcontractor maintains their own active coverage.
5How much does insurance cost for a property preservation company?
General liability typically costs $1,500 to $4,000 annually depending on revenue and claims history. Workers compensation rates vary by state and classification. Total annual insurance costs for a small preservation company often range from $5,000 to $15,000.