Landlords liability insurance is designed to protect you against the financial ramifications of someone making a successful claim against you for damages caused to them while in or on your property.
What happens if…
For example, if someone slips on a stair carpet that is not fitted correctly, and they injure themselves, potentially, they could try and make a claim against you. If the court agrees that this was down to your negligence (and remember, this is a hypothetical example), then you could face a compensation bill, plus court costs, which could run in to thousands of pounds.
As you can see from the above example, it also protects the person claiming, should negligence on your part be proved. Any court awards made to them is designed to compensate them for injury and / or loss of earnings, plus suffering, mental trauma etc.
Without liability insurance and in the event of a successful claim being made against you, you would have to find the costs yourself – this could potentially bankrupt you.
Not having insurance and a claim being made against you may also damage your reputation – not ideal, particularly if you own a number of properties.
How do I get landlords liability insurance?
Landlords liability cover often can form a standard part of a landlord insurance policy, with the upper claim amount varying depending on the provider. Check your let property insurance policy or speak to your provider to make you sure you have enough cover.
Employers’ liability insurance, however, does not always come as standard with some policies. This liability insurance protects the people working for you on your premises, such as cleaners, letting agents or decorators, in the event that they need to make a claim against you (because they have suffered injury, loss or damage). It also, of course, protects you too, as it you won’t need to find all the court costs and compensation yourself.
As you can see, ensuring you have the most appropriate type of cover may be very important. In today’s particularly litigious society, you may feel you wish to protect yourself and your business as much as you can. Having liability insurance in place is also part and parcel of being a responsible landlord.