Public Liability Insurance - Mandatory for small community land owner/company?

Bod_1234

AdrianC said:

If that's a hard sell, gawd help you if ever that parking space needs resurfacing.

We have funds for that sort of thing, because we don't waste money on things we don't need.  My neighbours are too smart to fall for the 80p a week trick.  They will be looking at the 40% increase in annual costs for something that's never been needed for the last 30 years we have jointly owned this land.

As for directors being personally responsible for accidents, I'm not sure that's entirely true.   It's their responsibility to ensure the communal area is as safe as it can be, so any obvious issues, like potholes, broken fences and stuff like that, but if anyone trips over a stone in the driveway, hit by a tree branch, then that's not really the directors fault.

emilyjane92

It seems this is being looked at from a "having to get insurance because Joe Bloggs is selling up" but why can it not be looked at as a security for all you joint owners from any claims made against you. It only takes one person to have a wander through your private land, have an accident and then come looking for the owners for compensation. £40 a year each is surely a bargain for the peace of mind this would give. If I had a share of the land, I would be pushing for it to be compulsory for the owners to have such insurance but I guess everyone has their own opinion on these sort of things.

Going back to your original question, it does seem strange that the solicitor is enforcing such cover. I would definitely be arguing that point but ultimately I would probably just get the cover for the other reasons above.

user1977

emilyjane92 said:

Going back to your original question, it does seem strange that the solicitor is enforcing such cover.

Like I said above, that seems to be a misinterpretation of what's going on. The buyer is negotating with the seller, and one of the things they'd like to be sorted as part of the sale is getting the insurance in place. The solicitor doesn't have anything to enforce.

AdrianC

Bod_1234 said:

As for directors being personally responsible for accidents, I'm not sure that's entirely true.   It's their responsibility to ensure the communal area is as safe as it can be, so any obvious issues, like potholes, broken fences and stuff like that, but if anyone trips over a stone in the driveway, hit by a tree branch, then that's not really the directors fault.

The legal fees to defend that claim, however baseless it may be, will make the premiums look cheap.

But, ultimately, it's your decision as a group...

You have two choices.

1. Pay for the insurance.
This sale goes through.
You are protected against future claims.

2. Do not pay for the insurance.
This sale may fall through (will future sales fall through, too?)
You are not protected against future claims.

Pick one.

GDB2222

It's not as bad as that, as the op says the land is owned by a company, on behalf of the homeowners. So, it would only be the directors of the company in the firing line.

I do like the justification that there have been no incidents in the last 30 years, so there won’t be any in the future! Serious accidents on private land are very rare. If not,  the premiums would be far higher. 

The op is quite right that there is no obligation to insure this liability. Once again, one of those questions where the op has made their mind up what the right answer is before asking.

Bod_1234

user1977 said:

 buyer is negotating with the seller, and one of the things they'd like to be sorted as part of the sale is getting the insurance in place. The solicitor doesn't have anything to enforce.

The response to the solicitor is the company aren't going to buy insurance. The seller can buy it this year to facilitate the sale, the buyer can vote as a shareholder at the next AGM if they want to carry on (and contribute financially towards it). The reality is however I suspect they will lose the vote, as the 6 other shareholders will likely vote to not to.

As for general liability. The postman can equally trip over on either the common land or my own private part of the land on his way to my postbox. Any company Liability insurance would cover the former but not the later.  I wonder how many people have public liability for their private property??

The director (and homeowners) are only responsible to ensure the property/land is safe and well maintained, that is where it ends from a liability point of view.

ciderboy2009

Bod_1234 said:

 I wonder how many people have public liability for their private property??

I have it as part of my home insurance policy - I would imagine that most policies include it.

AdrianC

ciderboy2009 said:

Bod_1234 said:

 I wonder how many people have public liability for their private property??

I have it as part of my home insurance policy - I would imagine that most policies include it.

As do I.

With a public footpath through my property, I'd be mad not to have.

user1977

Bod_1234 said:

As for general liability. The postman can equally trip over on either the common land or my own private part of the land on his way to my postbox. Any company Liability insurance would cover the former but not the later.  I wonder how many people have public liability for their private property??

I do, and I expect you and everybody else in your estate do too. And if you've all got cover for the bits of land you've actually got sole control over, can you understand why owners might want it for the communal areas too?

The director (and homeowners) are only responsible to ensure the property/land is safe and well maintained, that is where it ends from a liability point of view.

Yes, the point is what happens when you get a claim that you've failed in that duty, if you can't just chuck it to an insurer to sort out?

GDB2222

Bod_1234 said:

user1977 said:

 buyer is negotating with the seller, and one of the things they'd like to be sorted as part of the sale is getting the insurance in place. The solicitor doesn't have anything to enforce.

The response to the solicitor is the company aren't going to buy insurance. The seller can buy it this year to facilitate the sale, the buyer can vote as a shareholder at the next AGM if they want to carry on (and contribute financially towards it). The reality is however I suspect they will lose the vote, as the 6 other shareholders will likely vote to not to.

As for general liability. The postman can equally trip over on either the common land or my own private part of the land on his way to my postbox. Any company Liability insurance would cover the former but not the later.  I wonder how many people have public liability for their private property??

The director (and homeowners) are only responsible to ensure the property/land is safe and well maintained, that is where it ends from a liability point of view.

Given that you had clearly made your mind up before posting your query, can I ask why you asked the question in the first place?