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 What is insurance for? Our basic policy provides "public liability" cover for residents' associations and management companies responsible for private roads and estates. If someone claims compensation from the association or company, the insurers will deal with the claim. That is, they will either settle it or contest it; and if they contest it they will pay any compensation awarded by the court, and legal costs. The most common sort of claims are those arising from accidents, and the most common sorts of accidents are those caused by defective road surfaces, or branches falling off trees. |
Private roads are not particularly risky places. But it's important to bear in mind that:
 Legal liability may arise without moral fault. The fact that someone has not, by ordinary standards, behaved irresponsibly or culpably, does not mean they cannot be held legally liable in the event of an accident.
Even bad claims - those which seem destined to fail - need to be dealt with. If they are ignored, the result will be legal proceedings, and ultimately an adverse decision by a court.
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| Public liability insurance thus make sense. Our basic policy offers levels of cover from £2M to £5M. Also included is £25,000 of property damage cover, designed to protect signs, gates, fences, security equipment and street furniture. (It doesn't cover damage to trees and plants, nor to the road surface - this is bound to wear out eventually, so there isn't a risk one can insure against. Underground pipes, cables etc are covered if the residents' association is responsible for them, though this isn't usually the case, since they are generally the responbsibilty of the utility companies.) |
| Finally, our basic policy policy also includes £25,000 of legal expenses cover. These "extras" are bundled with the public liability insurance because it's much cheaper to provide cover in this way - separate property damage and legal expenses policies would typically cost several hundreds pounds or more each. |
| What about "D&O" insurance? Directors' and officers' ("D&O") insurance protects company directors and the committee members of an unincorporated association against personal claims against them. Examples: (1) A company director signs a contract for some work on the road. The work goes badly wrong, and the dirctor is accused of being negligent and asked to compensate the company for the loss it has suffered. (2) At a meeting, a committee member criticises a resident. The residents takes exception to the remarks, and sues for defamation. |
| A majority of our members do not take D&O insurance. They seem to feel that relations in their road are good, and that this sort of insurance is not necessary. A minority do take it: we think this is often because directors or committee members become familar with idea of D&O cover in their professional or business lives; and while they are happy to volunteer, they feel that the company or association should pay for D&O cover so that they do not have to run a personal risk. |
| Our D&O policy is available as an extension to our basic policy (it is not available separately) and provides levels of cover of £100,000 or £250,000. Both policies are underwritten by Norwich Union through one of its subsidiaries, Aviva Insurance Ltd. PRS insurance is not available without membership. |
| Some common features Unsurfaced roads: the insurers usually accept these at standard rates, subject only to an increased excess for third party property damage. Pumping stations: the insurers usually accept these at standard rates subject to conditions relating to maintenance. Bridges: the insurers may in their discretion accept a road with a bridge, but detailed information about the state of the bridge will be required so that the insurers can assess the risk. Other hazards, such as lakes and streams: the insurers will expect to see details of the risk, and an indication of how it is to be managed. |
| To find out more about PRS membership and insurance, including the cost, you can ask for our information pack. |
Or get a quick, no obligation insurance quote. Premiums start from around £320 for our basic policy, and the cost of PRS membership + insurance is usually less - sometimes much less - than other polices. Our members enjoy peace of mind, knowing that they have tailor-made cover, and the additional benefits of PRS membership.
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