by Simon Vertue, Commercial Insurance Broker
26 July 2021

• Because managing a property comes with responsibilities
• Because members of residential property management associations are personally liable
• Because professional insurance advice can help to protect you should the worse happen

Members of residential property management associations are personally liable for any act which is negligent, outside their authority, or in breach of duty or trust. They are therefore exposed to the possibility of:

• Prosecution by the Health and Safety Executive following an accident to a resident or visitor to the property
• Civil action claiming damages as a result of a poor decision

Management Liability Insurance provides a broad level of cover and can include Legal Costs, Awards & Settlements for any claim or regulatory action brought against any past, present or future director, officer or employee subject to terms and conditions.

In addition, we offer the option to purchase Employment Practices Liability and Company Legal Liability to cover the company or association.

Here are some recent claims examples:

• A director was held liable because the value of another lessee's flat had fallen due to the director failing to identify and rectify external dilapidation
• A lessee held a director responsible for the poor workmanship of contractors, who were paid out of the service charge budget
• A third party sued following a defamatory remark inadvertently made by someone acting in the capacity of director
• The sale of a flat fell through because a director failed to deal with the paperwork and the resident sue for wasted legal costs

Getting the right advice to ensure you have the necessary insurance protection is vital, this is where our team of property insurance brokers can help. They will take the time to ask the right questions and come up with solutions so you don't have to worry about the unexpected.