Public Liability Insurance

The public liability insurance covers claims made by members of the public who are injured or whose property is damaged as a result of the insured’s activities. It generally pays for:

• Compensation for bodily injury or property damage caused to third parties

• Legal defence costs if the insured is sued

• Settlement or court-awarded damages within policy limits

Policy Documents

The insurance policy sets out the details of the buildings insurance contract.

(Copy requested from Firstport)

Directors & Officers Insurance

The D & O Policy is designed to protect leaseholders who volunteer their services as directors of the management company.
People appointed as Directors and Officers hold positions of trust. They will be liable for any act, which is negligent, outside their authority, or in breach of their own responsibilities. Directors and Officers should be aware that they can be personally liable for their acts and without insurance are effectively risking their personal wealth and the future of the association, since the financial implications of a legal action can be disastrous.

The residents in their capacity of a Director or Officer face numerous duties and responsibilities, even if the services of a managing agent are employed, some of which are defined in law. These responsibilities include the need to ensure that:
• The property is safe and Health & Safety legislation is complied with.
• Any contractors used to carry out maintenance at the property, do so properly
• The finances are in order as the resident can be held personally liable for the debts of a company if “he knew or ought to have known that there was no reasonable prospect that the company would avoid going into insolvent liquidation”.
The law does not distinguish between the director of a residents management company and that of a major corporation. Ignorance of the law is no defence, so it is important for any resident wishing to take a position of responsibility, to know the liabilities that they face. Especially as these liabilities may be unlimited.
Types of Exposures
• Health & Safety – fire safety, electrical and mechanical equipment checks
• Insolvency Act
• Companies Act 2006
• Disability , racial and sexual discrimination
• Dishonesty to fellow directors
• Failure to supervise
• Failure to appoint bona fide contractors
• Defamation (libel & slander)
Due to the above exposures D&O cover is needed to insure the directors and officers of the Residents Management Company against any claims made against them.

Directors & Officers Insurance

The D & O Policy is designed to protect leaseholders who volunteer their services as directors of the management company.