A resident unit manager is likely to require liability insurance to protect themselves against any claim for damages that they may be found liable for. The type of indemnity insurance they need will vary depending upon the nature of the units and their residents, but it is likely to be a combination of public liability insurance, professional indemnity insurance and possibly employers liability insurance as well. In order to properly utilise resident unit manager insurance, the manager should be familiar with the different types of liability insurance.
Public Liability Insurance
This type of insurance is designed to protect the policyholder—in this case, a resident unit manager—from any claims that may arise from the general public, which could include residents of the units, relating to any loss or damage to property or person that the policyholder is held liable for. This type of insurance normally excludes any claim arising from professional indemnity, which is why a professional indemnity insurance policy often co-exists with public liability insurance.
Professional Indemnity Insurance
This is a type of insurance, sometimes referred to as an errors and omissions insurance, which is designed to protect the individual in the event of them being deemed to have been negligent or them not fulfilling their duties properly in their professional capacity, in this case as a resident unit manager.
Employers Liability Insurance
If the resident unit manager employs staff, either permanent or temporary, contractors or subcontractors, then they may need employers liability insurance. An employer will have a number of legal responsibilities towards employees, and this type of insurance is designed to cover them in the event that they are found to be in breach of these responsibilities and a compensation claim is made.
Types of Resident Unit
Whatever type of insurance is needed, it will be assessed on the type of resident units that the unit manager is responsible for. The insurance company will want to know the total number of units or lots in the complex and also the number of units in the letting pool.
They will want to know if any of the units are connected with commercial premises such as cafes, shops, etc., and also if the complex being managed has facilities such as a tennis court, swimming pool, gym or spa, or child-minding facilities.
Whichever type of liability insurance is being taken out, the insurance company will want a certain amount of standard information relating to the resident unit manager.
Aside from standard details, the insurance company will want to know if there has ever been any claim for negligence or breach of professional duty against the unit manager or his business generally. This can include claims against any present or former partners or directors of the business.
The insurance company will also want to know if the resident unit manager or any partners or directors of the business have ever had any criminal convictions, or if any are pending.
A material fact is anything that the insurance company should know in order to make a realistic risk assessment of the business.
Whilst most of the information will be asked through a proposal form, the onus is on the individual or business to volunteer information that hasn't been asked, but which may be relevant to the proposal.
If they do not disclose a material fact at the time of taking out insurance, then it may affect whether or not any future claim is paid or disputed.