Property Owners Liability

Insurance is one subject that a building owner needs to become a near expert in as it can be complex. If there is less coverage than what is needed, it can mean added expense.  While buildings and contents insurance cover many disasters such as fire, flood or vandalism and accidental policies cover minor accidents, there is still a hole in many polices that is so serious it can result in the loss of a home or business. Not having property owner’s liability insurance could prove to be a disaster in its own right.

Most property owners have this type of protection actually included in a household policy.  For a business, a claim coming from ownership of a property ought to be included in the public liability cover.  Because this insurance can be so important, it is not a bad idea to be as familiar as possible with it.

Property owner’s’ liability is worth the cost as it can save a business or keep a home from being lost if there is expensive legal action against the owner.  The cost of the insurance will depend on a number of factors.  If the policy is for a business, then the nature of the business and how many claims similar companies have made to the insurer will be factors.  If the policy is for a family, then it will look at the neighbourhood and past claims made. 

With a business, calculating the risks is done by the insurance company using what is known as a book rate, also called an average rate, which is based on claims the insurer has paid out in similar circumstances. They will then use this rate to figure the premium using a factor that echoes the amount of activity the business does. This can be adjusted for such factors as good risk management or a good claims record. 

Certain other factors can matter as far as the owner is concerned of course.  If the property is going to be used as a rental, then the owner should seriously consider more than the standard amount because the owner has so much responsibility for another’s safety. 

Having contents and buildings insurance can give the owner peace of mind if there is a fire or if a tree falls on the garage. Property owners’ liability insurance, on the other hand, gives the owner peace of mind that if someone trips on their walk or falls in their home, a lawsuit will not result in the loss of their home. 

Likewise for a business owner the property owners’ liability insurance is their protection against loss if someone is hurt on their site. Finding out if there is enough coverage is the responsibility of the owner. The delivery man who slips on the walk that should have been cleared or the salesperson who loses her footing on the newly polished floor might well file a claim, which could shut the doors if the proper coverage is not in place.