Public liability insurance for holiday lets is an essential part of protecting yourself against financial risk when welcoming paying guests into your holiday home. As the owner you are liable for any accident that occurs in your property, and without the appropriate cover you could find yourself bankrupted by litigation disputes.
From faulty electrics to misused hot tubs, slips and trips to illness, there are multiple circumstances that can occur, causing serious injury to your guests and serious consequences for you as the owner.
That’s where public liability insurance for holiday lets can give you much needed peace of mind. Here’s everything you need to know about public liability insurance for holiday lets.
What is Public Liability Insurance for holiday lets.
What is Public Liability Insurance for holiday lets?
In short, public liability insurance for holiday lets protects you, the owner, from legal costs and compensation that you may become liable to pay if a guest suffers injury, death, disease or illness during their stay at your property.
If someone can prove that your negligence led to the occurrence of an incident at your property, then you will be held responsible. Public liability insurance for holiday lets is not required by law, but you’ll be taking a huge risk if you don’t have any cover.
Note: Many holiday let management companies will require you to have minimum cover for personal liability as part of the contract. For example, Sykes require all property owners to have at least £2,000,000 of public liability cover as part of our contract and you’ll need to provide evidence of this policy before you welcome your first guests.
Even if you let your property through a property management company, you will still be liable as the owner of the property.
Top tips to reduce risks at your holiday let
Welcoming your first guests can be a very exciting experience, and you’ll want to make sure your customers have a wonderful time, and even though most people are careful and considerate, sadly accidents do occur.
You may be tempted to included extras such as bikes, hot tubs and trampolines to entice more customers to your property, but these extras all come with significant risk factors. If these extras are not fit for purpose or if you fail to have them checked regularly for safety, then you could be held liable if they cause your guests injuries.
You also need to consider if there are features of the property that could cause harm, but cannot be altered, such as low ceilings. You need to think about how that will affect your guests and if there is anything you can do to minimalise risk.
Let's take a look at how you can manage the risk to your guests:
Putting up warning signs: If you have uneven pathways or narrow stairs, low ceilings or unusual building features, you could advise guests by putting up a sign to warn them. You might want to consider doing the same for any open fires or hot tubs. Sometimes a gentle warning or some clear instructions can massively reduce risk. Having visual signs to warns guests of any potential danger can be a great, cost effective way to reduce risk. You can also use brightly colored tape or paint to bring attention to any uneven surfaces or ceilings.
Removing certain objects: You might think that having bikes to offer, or kayaks available will entice more guests but they can come with significant risks. It can be very difficult to make sure that each item is fit for purpose between each letting. You need to consider whether certain items are really necessary. If it can be proved that the item is not fit for purpose, you could be liable. You may find that your property is just as popular without these items, and therefore removing them will significantly reduce the risk or accident and injury.
Tip: you can always team up with local companies that can provide the same items for hire. This would be much safer for both you and the customer and a great way to support local business.
Speak to your provider: Knowing what you are covered for is imperative. You can reduce your risks by removing certain things that the insurer does not cover. Don’t make assumptions, you’ll need to check the small print for exclusions, so you don’t get caught out. If there is anything in the property that you are unsure about, you should ask your provider if it will be covered.
Children and elderly or disabled guests: If your property has features that could make it dangerous for children or people with disabilities, you should make sure that you have taken every action possible to make it safe for them. This might include providing a stairgate for children, or making sure that there are adequate hand rails in place for people with mobility issues. Check your property access and see if there is anything you can do to reduce risks. You can always mention any possible risks in the description for the property when it is advertised, or let the guests know of any possible risks before they arrive.
Safety checks and certificates: Make sure that all of your safety checks have been completed by professionals from accredited services. You’ll need a fire safety certificate and you’ll need to make sure all of your electric sockets and gas appliances have been serviced. Remember that any incidents involving these areas are your responsibility.
Safety checks that you can carry out yourself:
There are some safety checks that you can do yourself to help reduce the risk:
Inspect your floors to make sure they are in good condition. Look for any issues with rugs or carpets, broken tiles or uneven paving. Have you secured all rugs and mats to prevent tripping?
Imagine that you have never been to the property before – check access areas by walking through them yourself. Can you see anything that could cause someone to trip? Does the driveway need to be cleared of leaves in the winter or is there an uneven step up into a room that could benefit from a hand rail? Perhaps there’s a low ceiling that requires a warning sign or some colored paint or tape to highlight it?
Keep good records and review your property regularly. This can help you in the event of a claim against you. Routine inspections will demonstrate that you are, and have been, health and safety conscious which may be beneficial during any litigation.
Many slips and falls occur in the bathroom. Check that your bathroom is equipped to reduce water spillages. You can reduce the risk of your guests having an accident by making sure you have a shower curtain that is properly secured and adequate at preventing water spillages. Put hand rails in to help people get in and out of the bath and think about anti slip products you can place on the floor of the shower or bath
Ask your cleaner to report any damages or changes that they have noticed. You could ask them to check that the hand rails are all secured properly for example, or ask them to keep pathways clear by removing things like wet leaves in winter.
If you hire cleaning staff, you will also need to make sure they are kept safe and you may require employers liability insurance for your holiday let.
What is Employers Liability Insurance and do I need it for my holiday let?
Every employer has the responsibility to provide safe working environments to their staff. As a holiday let owner, if you choose to hire a cleaner, you will be legally responsible for the health and safety of your cleaner while they are working in your property.
The same applies if you hire a gardener at your property. If they suffer an accident or illness while they are working at your property, then you will be responsible.
Most specialist holiday home insurers will be able to offer this as an extra, or they may have packages that offer this as standard. Don’t forget to make sure that it is included if you decide to hire staff.
Is malicious damage covered by public liability insurance for holiday lets?
You don’t want to think about your guests deliberately causing damage to your property, but on rare occasions it can happen. Malicious damage is broadly defined as intentional destruction or defacement of property.
For example, if your guests vandalise the property in anyway, such as deliberately breaking windows, it will be considered as malicious damage. The same goes for incidents of fly tipping and trespassing. As mentioned above, these are usually very rare occurrences, but you don’t want to take the risk of being left with large bills or legal expenses if you find yourself starting litigation proceedings against guests for this type of damage.
Most specialist insurance providers for holiday letting will include cover against malicious damage in their policies, but it’s with checking yours to make sure that it is included.
Holiday park restrictions – who is responsible if my holiday let is within a leisure park?
If you own a property that is part of a leisure park or a caravan park, then you may already be covered by the owner of the park if they already have public liability insurance. But you’ll need to check this with them, quite often the cover the park owner provides will only cover guests in communal areas within the park grounds and not within your private property.
It’s worth checking with the park owners regarding their public liability insurance. You don’t want to get caught out if a guest falls ill from the water supply or has an accident on the grounds. As mentioned previously, it’s best not to assume. Find out where you stand by speaking to your both your insurance provider and your holiday park management.
Does Public liability insurance for holiday lets cover damage caused by pets?
Pet friendly properties are extremely popular, and people love to take their beloved pets on holiday. If you’re considering welcoming pets to your property, you’ll be accessing a wider customer base, but if a pet suffers an accident or falls ill from being in your property, it is not usually covered by personal liability insurance for holiday lets.
You’ll also be increasing the risk of damage to your property. You may want to consider adding additional charges for pets to cover the extra cleaning costs, or perhaps a small deposit that you can return to the guest if the property is undamaged at the end of the stay. You may find that your customers already have third party insurance that provides cover if their furry friends cause any accidental damage.
Public Liability Insurance for Holiday Lets in Scotland
The Scottish government has advised that public liability insurance is a mandatory condition and must be in place when applying for the required short-term let license.
The required amount of public liability insurance for obtaining a short-term let license varies by local council.
The initial draft of the Licensing Order in 2021 suggested a requirement of public liability insurance cover of no less than £5 million. However, this specific figure was later removed from the Licensing Order following feedback about the costs associated with such a high level of cover, particularly for those letting their own homes.
Instead of a fixed amount, the revised requirement calls for adequate insurance, with a recommendation that public liability insurance should be at least £2 million for whole property lets. It's also specified that this insurance need only be in place for the time that guests are staying at the premises.
Local councils have the authority to set additional conditions, so it's important to check with your local council for specific requirements regarding the level of public liability insurance needed for a short-term let license. This means that while the general guidance recommends a minimum of £2 million, some councils might have different requirements or recommendations.
For example, as of December 2022, research from the short-term letting insurance experts at Pikl suggested that of the 32 local councils:
Six stipulated a £5m requirement (City of Dundee, Falkirk, Midlothian, Moray, Perth & Kinross and Stirling)
One confirmed £5m was a guidance value only (City of Aberdeen)
Three stipulated minimum £2m (Aberdeenshire, Angus and East Dunbartonshire)
21 had no limit just that there had to be liability cover in place
One was yet to publish final requirements.
For detailed information on the legal requirements for a short-term let license, including public liability insurance, you can refer to the Scottish Government's guidance.
Furthermore, the Association of Scotland’s Self-Caterers (ASSC) is a useful news source for further reading on the impact of the short term let licenses, including any lobbying, where we have lended our support. Please visit: ASSC.
Summary
We hope that we have given you plenty of food for thought when it comes to public liability insurance for holiday lets. Remember to make sure that you are adequately covered and it won’t hurt to take a little time to think about how you can make your property safer for your guests. It could save you a great deal of time, money and hassle in the future. For further details read our full guide to holiday let insurance.
*Sykes Cottages Ltd is an Introducer Appointed Representative of Pikl Insurance Service Limited Registered Number 10449346 who are authorised and regulated by the Financial Conduct Authority firm number 773457. Registered Office: Suite B, 2nd Floor, The Atrium, St Georges Street, Norwich, England, NR3 1AB.
As a holiday letting owner you are responsible for compliance with health & safety laws, regulations and guidance, and for having suitable insurances in place (not Sykes Holiday Cottages or its brands (Sykes)). From time to time, Sykes shares information with you on the topic of health and safety and insurance. When it does so, it is not providing you with advice (legal, financial, tax or otherwise); please seek your own as you see fit. In addition, it is not making any representations or warranties about the information being complete or free from errors or inaccuracies. Sykes shall not be liable for any loss or damage arising under or in connection with your reliance on it.
Charlotte Beautement, Holiday Let Content Writer
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