Private roads and resident’s land are usually jointly owned by private individuals who live or own a property on that street. Unlike public roads owned by local councils, private roads are the responsibility of the owners.
If your residents’ association or management firm is a limited company and you employ at least one person, or have more than one director, you are legally required to have Employers’ Liability Insurance under the Employers’ Liability Act 1969. The reality is you can be fined £2,500 every day you are not properly insured.
Employers’ Liability can be there to protect you and your employees if a worker were to become ill or injured as a result of carrying out work for your company. It also covers directors, as generally they are regarded as having the same rights as members of staff, as well as volunteers.
It is worth noting that the need for liability protection is unaffected whether you employ anyone directly or not and if they are paid a wage or not. For example, if a director instructs another director to do something for your company and they come to harm, it is possible a claim could be brought against the association as a whole. This is because although directors may not be paid a wage, they are still acting and ‘working’ for the association or company, as they make decisions on its behalf. Public Liability would not cover any volunteers or directors in the event of an injury or damage claim, as they are classed as an employee; therefore, Employers’ Liability is key.
If you have any queries about an existing policy or would like to get a quote please contact us at privateroads@edwardsinsurance.co.uk or call 01564 730 900, alternatively you can complete a contact form by clicking here.