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Charles Brown, the designated broker of Tram City Property Management, discusses the MIT property management agreement and the indemnification clause. This clause requires the owner to hold the property management company harmless in the event of a lawsuit where both parties are sued. This could happen due to a tenant or visitor injury, even without specific negligence. It is important to have the property management company named as additional insured on the rental dwelling policy to avoid being responsible for their legal costs. State Farm is one insurance company that automatically covers property managers.
