Public Liability - The Law of Insurance and Public Liability

The Law of Insurance and Public Liability

In the course of managing any property, you are obliged to comply with laws and statutes administered by government and municipal bodies. These bodies impose various liabilities of which the property owner/manager should be aware.

The most common examples of statute liability are in areas where you are required by law to effect insurance, e.g. workers' compensation and motor vehicle compulsory third party.

Property, hotel and operations managers should become familiar with the various types of contracts involved in commercial and retail activities. These cover a wide field but the more significant contracts are:

• the head lease or the management agreements
• tenancy and casual leasing agreements
• contracts with independent contractors for cleaning, lift and escalator maintenance, air conditioning and fire protection maintenance, etc.

The major contractual liability from an insurance viewpoint is undoubtedly found in head lease and management agreements. These require the manager or head lessee to fully maintain, repair and replace the property, if damaged, until expiration of the agreement or lease.

Furthermore, the contracts usually require an indemnity to the owner against liabilities imposed upon him for injuries and property damage arising out of the use, occupation or management of the property.

Every contract contains covenants imposing responsibilities on one or other of the parties. These should be carefully examined to ensure they are not unduly onerous