3) Property Owners Liability.

A property owner must make adequate provision for any legal liability that may arise. Many of the liabilities that occur will be the responsibility of the lessees, however an exposure to possible Third Party action still exists particularly where the duty to maintain and upkeep a property is retained by the landlord. Even if this has been passed onto to the tenants, the upkeep of common parts etc will need to be considered. Should any tenants sub-let property this can cause problems in the event of injury or damage to Third Party persons or property, it is therefore prudent for a landlord to seek liability insurance. Factors to consider:

• The Limit of Indemnity - this must take into account the size, layout and use of a particular building, large properties occupied or frequented by many people have a considerable accumulation should an incident occur. This factor not only applies to the occupants of the property itself but also to adjoining premises where the risk of injury arising out of the ownership of premises again exists. Each property will have its own particular circumstances and require individual assessment the minimum limit we would generally recommend would be £5,000,000 but higher limits for larger properties/ industrial estates are advisable. Once established the limit will need to be reviewed periodically to reflect the increasing court awards made to injuried parties in the U.K.
  
  
• The standard Commercial Property Owner policy will include (where requested) legal liability cover for claims arising out of the ownership of property. This will include normal maintenance and minor repair of your property by your employees. If major alterations or structural work is to be undertaken it is essential insurers are notified so the necessary cover can be effected to provide protection in the event of loss or damage to Third Party property being caused. Likewise should you provide any other facilities such as security, leisure, creche etc this must also be disclosed.
  
  
• If certain items of plant are the landlords responsibility separate cover may be necessary to provide adequate protection in the event of loss or damage arising through the use of that plant. Items will include lifts, escalators, hoists, air receivers, steam boilers etc.Such items are likely to be subject to legislation and will require periodic statutory inspections.(Material damage by explosion of steam boilers will not normally be covered under a material damage policy, specialist cover may be needed).

Note: Employers Liability cover can be included within a property owners "package" policy if required. The standard limit of indemnity is £10m.


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