Basic policy
Accidents will happen
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 dispute it, as they think best;
and if they dispute it they will pay any compensation awarded by
the court, and legal costs.
The causes of accidents are many and various; but the most
common are those caused by defective road surfaces, and branches
falling from trees.
Private roads and estates are not particularly risky places. But
it's important to bear in mind that accidents will happen and
that:
- Legal liability may arise without moral fault. Even though a
residents' association has not, by ordinary standards, behaved
irresponsibly or carelessly, they may still be held legally
liable to pay compensation in the event of an accident.
- Even bad claims - those which seem bound to fail - need to be
dealt with. If they are ignored the result may be legal
proceedings, and ultimately an adverse decision by a court. In the
absence of insurance, the cost of dealing with the claim will fall
on residents.
Public liability insurance thus make sense.
Scope of basic policy
Our basic policy offers levels of public liability cover of £2M
or £5M. Also included is £25,000 of property damage cover, with a
single item limit of £10,000, designed to protect signs, gates,
fences, security equipment and street furniture. These limits can
usually be increased, for an additional premium, if an association
has property of greater value which it wishes to protect.
The policy 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 to be insured against. Underground pipes, cables etc are
covered if the residents' association is responsible for them,
though this isn't usually the case (the exception is surface water
drains) since they are generally the responsibilty of the
appropriate utility company.
Finally, our basic policy policy also includes £100,000 of legal
expenses cover. These "extras" are bundled with public liability
insurance because it's much cheaper to provide cover in this way -
separate property damage and legal expenses policies would
typically cost much more.
Additional cover
Please see the next page for additional cover we can offer.
Last Updated: 01 September 2011