What is property maintenance insurance?
Understanding property maintenance insurance is an important consideration for businesses involved in the upkeep and care of commercial or residential buildings owned by landlords and property management companies.
Why is property maintenance insurance necessary?
Despite health and safety policies and careful business planning, things can and do go wrong.
A routine maintenance callout could result in a client’s tenant being accidentally injured by your power tools. Similarly, you could provide advice to a client in a good faith, only for that advice to end up causing the client more harm than good.
Even if an incident is not directly your fault, you may be held liable and could end up paying compensation and damages if a client or third party is affected. Likewise, you could also be out of pocket if your work is interrupted due to theft, personal injury, or other circumstances.
Having insurance means that if an unexpected incident occurs where you are forced by a court order to pay a claim or need to find the cash for a large business expense, like a set of replacement tools, your cashflow won’t be prohibitively impacted.
In addition to providing a form of protection, property maintenance insurance can also contribute to the overall success of your business by instilling confidence in clients by demonstrating your commitment to responsible business practices.
When should a property maintenance business consider getting insurance?
Getting property maintenance insurance should be a priority from the inception of your business. Whether you're a start-up or an established enterprise, having insurance in place safeguards your operations and reputation from day one.
What does property maintenance insurance cover?
Property maintenance insurance provides cover for a range of potential risks associated with the job. The types of policies included are often as follows:
- Public liability insurance: Shields against third-party claims for injuries or property damage during maintenance activities.
- Employers’ liability insurance: A legal requirement if you have employees, it covers you if an employee makes a successful claim for work-related injuries.
- Professional indemnity insurance: Provides protection against financial losses resulting from negligent professional advice or services offered.
- Accidental death cover: Provides financial support for loved ones in the unfortunate event of your accidental death during work-related activities.
- Tools cover: Safeguards essential tools, ensuring quick replacements in case of loss or theft.
- Personal accident cover: Offers financial assistance in the event of accidental injuries, covering medical expenses or loss of income during recovery.
How does the cost of property maintenance insurance vary?
The cost of property maintenance insurance varies depending on factors such as the size of your business, the range of services offered, and your claims history. Consulting with an experienced insurer is recommended if you want a quote tailored to your specific business needs.
What legal requirements are associated with property maintenance insurance?
Having employers' liability insurance is a legal requirement if you have employees. While having other types of cover is not required by law, it does make good business sense. Some types of insurance (e.g. public liability) may be contractually required when working with certain clients.