Managing residential or commercial property in London comes with high-value assets, complex legal responsibilities and exposure to multiple risks — from tenant injury and maintenance failure to financial loss or professional negligence.
Property management insurance protects landlords, letting agents and facilities managers against these liabilities, ensuring business continuity and regulatory compliance. At Fraser Bond, we help clients design insurance portfolios that reflect London’s property realities — safeguarding both income and reputation.
Property management insurance is a tailored package designed for landlords, managing agents, and property companies responsible for maintaining or letting property on behalf of others. It combines several core policies to protect against physical damage, legal disputes and financial claims.
A typical policy includes:
Professional Indemnity Insurance – Protects against claims of professional negligence, such as incorrect advice, compliance errors, or breach of duty in managing a property. (hiscox.co.uk)
Public Liability Insurance – Covers injury or damage to third parties (e.g., tenants or visitors) arising from property-management operations. (axa.co.uk)
Employers’ Liability Insurance – A legal requirement in the UK if staff are employed, covering employee injury or illness at work. (gov.uk)
Property Owners’ Liability Insurance – Protects against claims from third parties for accidents or injuries occurring on a managed property.
Buildings & Contents Insurance – Covers damage from fire, flood, vandalism, or structural collapse.
Directors’ & Officers’ Liability (D&O) – For company directors or officers in management firms facing claims over decisions or compliance failures. (markeluk.com)
Cyber & Data Protection Insurance – Increasingly essential for property managers handling sensitive tenant and financial data.
London’s property landscape is complex and high-risk, involving:
High asset values – Even small incidents (fire, flood, collapse) can cause six-figure losses.
Multiple stakeholders – Landlords, tenants, freeholders, contractors and agents — all with contractual obligations.
Stringent regulation – Health & safety, electrical and fire compliance, leasehold law, and data protection.
Professional accountability – Mismanagement claims, lost rent, or compliance errors can trigger costly litigation.
For example, a managing agent failing to arrange adequate fire-door maintenance could face both regulatory and civil claims after an incident. Similarly, a landlord’s liability could be engaged if a tenant injury occurs due to inadequate oversight.
Property management insurance provides financial and reputational protection across these risks — safeguarding operational continuity and investor confidence.
| Coverage Type | Typical Limit / Range | Notes |
|---|---|---|
| Professional Indemnity | £250,000 – £5 million | Required by many professional bodies (e.g., ARLA, RICS). |
| Public Liability | £2 million – £10 million | Higher limits advised for multi-unit London properties. |
| Employers’ Liability | £10 million | Statutory minimum. |
| Buildings Insurance | Reinstatement cost (varies by portfolio) | Should reflect full rebuild cost including London location premium. |
| Cyber Insurance | £100,000 + | Covers data breach and GDPR-related risk. |
| D&O Liability | £500,000 – £2 million | Common for incorporated management firms or RTM companies. |
Premiums depend on the size of the managed portfolio, property type, number of employees, claims history and value at risk.
Fraser Bond recommends the following approach when securing or reviewing property-management insurance:
Define your risk profile – Residential blocks, commercial units or mixed-use portfolios each have different exposures.
Check regulatory and contractual obligations – Agents regulated by RICS, ARLA or ICAEW often require minimum professional indemnity levels.
Confirm lease requirements – Many leases stipulate insurance conditions that must be mirrored in management policies.
Bundle effectively – Combining property, liability and professional indemnity under one insurer can reduce gaps and simplify renewals.
Review exclusions – Common exclusions include asbestos, gradual deterioration or deliberate acts — understand what isn’t covered.
Assess cyber and data risks – With tenant portals and online payments, data-breach cover is essential.
Reassess annually – London property values and regulatory demands change rapidly; ensure coverage keeps pace.
Fraser Bond’s unique advantage lies in combining property-market expertise with risk and compliance advisory. Our team supports:
Landlords & Freeholders – Ensuring building and liability cover aligns with lease and lender requirements.
Managing Agents & RTM Companies – Verifying professional indemnity and public liability coverage.
Investors & Developers – Integrating insurance with asset-management strategy and regulatory compliance.
Contractors & Service Partners – Confirming adequate insurance levels before engagement.
By aligning insurance with operational and legal obligations, we provide clients with peace of mind that their assets, income and reputation are protected.
Protect your property-management operations and the assets under your care.
Visit FraserBond.com or contact our London advisory team for expert guidance on property management insurance, compliance, and portfolio risk strategies.
