No – Public liability insurance and property owners insurance are two different types of policy.
What is property owners insurance?
Property Owners Insurance, also referred to as Landlord Insurance, is a buildings (and contents) insurance policy that financially protects you, your tenant, your earnings and your property. In particular this type of policy will cover you against material damage to your property. There is also additional cover on the policy to include loss of rent or alternative accommodation cover and property owners liability.
Loss of rent insurance will cover a landlord for the loss of a rental income following an insured peril (fire, flood etc.) due to the tenant having to move out because a property has become inhabitable. Another area of cover is for alternative accommodation and again following insured damage, if the landlord is responsible for rehousing tenants, then alternative accommodation costs are covered should they need to leave the property.
Property owners liability protects the property owner against claims for accident or injury to a third-party person or property that are related to their property. Some examples of where we have seen this cover be utilised are;
- Roof tiles had blown off a property and landed on a neighbours conservatory roof and caused damage. Costs were paid to repair neighbour’s conservatory.
- A person was viewing a house for sale and slipped over on wet unkept decking in the garden, they were badly injured. Compensation was paid for injuries sustained.
- Tenant fell on pulled up carpet on stairs and injured themselves. This had been reported to the landlord whom had not made the necessary repairs. Compensation was paid to tenant for injuries sustained.
What is Liability Insurance?
Public Liability Insurance covers compensation for injury or accident to a third-party persons or property as a result of your negligence. For example, if a builder is carrying out works on a property and a member of the public is to trip on building material that isn’t secured properly, then compensation would be paid for any injuries to that person. The limits of cover usually start at £2,000,000 and can be increased to £5,000,000, with some insurers £10,000,000. The price of the policy will vary dependent on what level of cover you take.
Employers Liability is very similar however this is for accident or injury to an employee or person you are responsible for in the work place. The level of cover is standard at a minimum of £10,000,000. Higher limits can be purchased although this is rare There is sometimes confusion because the Employers Liability certificate shows a minimum of £5,000,000 but this is because cover is limited to £5,000,000 where terrorism is a factor. An “employee” is any person that you are responsible for; full-time, part-time, a volunteer, an apprentice or a work experience student. There are some but very few exceptions.
Please talk to one of our advisers, who will guide you through what is available and give you the information that you need to make a decision. Call 01442 242400 or make contact here today.
