Why do I need to add HomeWorks Property Management as an additional insured?

Why do I need to add HomeWorks Property Management as an additional insured?

Let’s say a tenant trips at the property, breaks her leg, and sues. She is probably going to sue you and HomeWorks. Your insurance should step in and defend you. Since we are acting as your agent, we need that same protection. Our management agreement, like all management agreements, has an indemnification clause that says you agree to indemnify HomeWorks Property Management LLC, unless we are found to be negligent. This means, if your insurance does not cover us, we have to hire an attorney on our own. Then our attorney will be fighting your attorney and the tenant. If we are found not guilty, our attorney will come after you for the attorney fees. Had we been added as additionally insured, your insurance company would defend us both equally. Most major insurance companies do this and for no additional charge. If your insurance company will not add HomeWorks, you will need to switch to an insurance carrier who does.