Insurance can be confusing at the best of times, but with so many rumours and myths around, who needs land insurance? That’s why, in this blog, we’re breaking that down.
Contrary to popular belief, land insurance is not only needed for the super elite, or large companies making a profit off of the general public, it’s also for those with smallholdings and arable land among others.
What is land insurance?
Land insurance, or land liability insurance, is essentially a public liability insurance for, yes, you guessed it, land.
The policy gives protection to landowners against third-party claims for any injuries, death or property damage on your land.
If you’re still unsure as to whether you need this type of protection, you can read all about what land liability insurance is and who needs it in our handy guide.
Land liability insurance myths
The cost of land liability insurance is too expensive
Whilst there is no one-size-fits-all when it comes to the price of land liability insurance, there are a few ways in which insurers will calculate the price of your policy.
The cost is often influenced by the type of land being insured, how many acres of land, the type of cover you wish to buy, the size of the land and whether the land is used to generate revenue.
Adrian Flux’s relationships with insurers provide us with access to a number of different policies to help you find the cover you need that fits your wants and budget.
Standard home insurance can cover smallholding activities
A typical home insurance policy is only designed for residential use and won’t include any agricultural activities such as farming equipment or maintaining livestock areas.
Livestock are covered by property insurance
Despite popular belief, livestock are not covered under property insurance. A separate policy will be required to protect farm owners and their animals.
This is because standard policies do not cover risks such as diseases, injuries animals may incur or theft. You will need dedicated livestock insurance.
Land insurance doesn’t cover shared or private roads
A land insurance policy is perfect for those who have a private road leading to their property, whether you own it yourself or it’s shared.
Policies can be adapted to cover single parties or multiple parties for those with a complex private road leading to their street.
My land is too small to insure
No land is too small to insure, especially if it comes with the risk of a public liability claim. We offer flexible insurance policies that cover up to 45 acres of land and offer up to £5 million of liability cover, covering against third-party injury or damage.
I don’t need land insurance for a private car park
Accidents can happen anywhere, and private car parks are no different. As a landowner, you are still liable for what happens on your property.
Landowners may be held liable if an individual sustains an injury due to hazards such as uneven surfaces or potholes present in the car park.
Should slips, trips, or falls occur on your property, perhaps due to hazards like ice or wet leaves, you could also be held liable.
Standard or landlord insurance will automatically cover me as a car park owner
For most general insurance policies, car park areas aren’t an insured peril. Failing to arrange correct insurance may lead to your insurance being invalid and your claims being rejected, such as those concerning pedestrian injuries. Property owners’ liability cover or specific land liability insurance may be necessary.
Putting a ‘park at your own risk’ or a similar sign avoid liability
Posting such signs doesn’t grant legal immunity for personal injury or typically cover negligence claims. Your duty of care under the Occupiers’ Liability Act still stands, particularly if hazards were foreseeable or reported previously.
Freeholders building insurance covers all liability claims
If you’re a freeholder or a management company you may believe your buildings insurance for a site you own, such as a block of flats, covers you for liability claims. In reality this is not true, they often only cover property owners liability in respect of the building or contents.
This means claims can still be made against you by visitors, maintenance workers and residents.
Basic buildings insurance covers all liability in a courtyard
Typical block buildings insurance focuses on structural damage only, and usually includes communal issue cover, but it is unlikely to incorporate public or property owners’ liability for injuries that can happen in shared spaces such as courtyards, unless specified in the policy.
Standard home insurance covers accidents on a public footpath on my land
Home insurance policies will often have limited, or in fact, no public liability coverage for incidents that happen on public footpaths on your land, even if they only briefly cross over your property.
To protect yourself against third-party injuries that can occur from people walking, running, cycling or dog walking, you will need specialised land liability insurance.
If my local council maintains the footpath, I have no liability for injuries
The Highways Authority will typically maintain public footpaths, but landowners are responsible for the safety of their structures. This includes things like gates, signage and stiles.
If one of these leads to an injury to a third-party, as a land owner you could face a liability claim.
Liability only applies to invited visitors, not trespassers
While this may seem true, it’s actually a myth. The Occupiers’ Liability Act 1957 means invited visitors are covered, however, the 1984 Act is expanded to limit duties to trespassers and individuals using public rights of way.
This specifically pertains to injuries resulting from known hazards. Consequently, even in cases of unpredictable or unauthorised access, liability claims may arise.
A warning sign telling people to ‘watch their step’ lets you off the hook
For public footpaths, a basic warning sign may not suffice, particularly if terrain hazards are not evident, or they impact children or susceptible individuals.
In general liability law, warnings can lessen duty, but only if they are unambiguous and sufficient to highlight the risk.
I don’t need land insurance for an allotment or arable land
Although not legally mandated, land insurance is advisable for arable land, including allotments. This is due to the inherent risks of farming and public access. Arable land, used for crop cultivation, can expose landowners to liabilities such as injuries to individuals or damage to property.
Land liability insurance is not needed for smallholdings
Land liability insurance, whilst not a legal requirement, is highly recommended for smallholdings.
This policy will protect those who have agricultural land of up to 50 acres against claims from third parties who may suffer injury on your land or damage parts of your property such as an outhouse.
All smallholding insurance policies are the same
Not all smallholding insurance policies are the same; the terms and conditions can vary from insurer to insurer, with some offering different levels of protection and exclusions. Choosing a tailored policy will provide you with the type of cover you’ll need.
That’s why going through a broker such as Adrian Flux will reduce any gaps in your coverage whilst finding the right level of insurance you need at an affordable price.
People can’t bring a claim against me if they’re trespassing on my land
Even though strangers may be trespassing on your land, they can still claim against you if they’re injured. After all, trespassing is seen as a civil wrong, and not a criminal offence.
It is down to landowners to protect members from the public who may end up on their land. If you have chemicals or dangerous machinery left lying around and someone is hurt, you can be held liable for damages. Even if you feel you’re in a strong position to defend yourself, having no land insurance will still mean you will have to fork out for legal fees.
Footpaths can’t be covered by land insurance
Footpaths can be covered by your land insurance, even if they are used by the public.
Get land liability insurance from Adrian Flux
If you’re looking for land liability insurance, consider taking out cover with us.
We offer insurance for various land types, including grazing land, private or unadopted roads, woodlands, development sites, and more. Simply call our team on 0800 916 1270 for a quote or book a callback at a time that suits you.
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