B and CE Insurance Limited
B&CE Insurance Limited is a relatively small company - employing fewer than 20 individuals - founded relatively recently in 1995 by John Jory.
The insurance arm is part of the B&CE group of companies, the first of which made its appearance in the 1940s. The group operates from offices in Crawley, West Sussex.
The principal activity of B&CE is as a pension provider for its stakeholders. It is a non-profit organisation, run for the benefit of its members and their dependents. Pensions are mainly provided to moderate and low-paid workers, principally in the construction industry and related trades. The company won the 2012 Pension Scheme of the Year that is awarded by the Financial News Awards for Excellence in Institutional Pensions UK.
In addition to its pension scheme, however, B&CE also offers both life insurance and healthcare schemes for employees, together with employee accident cover.
Typically, landlord insurance provides protection on three main fronts:
- cover for the physical assets likely to be owned by landlords, such as the let premises and any contents owned by the landlord;
- business protection cover, often reflected in insurance against loss of rent and the business disruption this causes; and
- safeguarding the landlord against principal liabilities - property owner's liability cover to protect the landlord against claims from tenants or members of the public and employer's liability cover for protection against claims from employees.
B&CE landlord insurance
B&CE does not offer landlord insurance - there is no provision for buildings or contents insurance, for business interruption through loss of rent, or for property owners or employers liability cover.
At first glance, it might seem that the company's employee accident policies might help the landlord in protecting against claims from employees who may be injured in accidents related to their work involving the let property.
Although B&CE's employee accident policies provide any employee with a tax-free, lump sum settlement of up to £30,000 in the event of an accident, it must be stressed that this does not satisfy a landlord's legal obligation to hold employee liability insurance (in practically any case where the landlord employs any individual in the running of his or her buy to let business.
The legislation in question is the Employers' Liability (Compulsory Insurance) Regulations, 1998, which require any employer (with all but a few exceptions) to hold employers liability insurance up to a minimum of £5 million in any single claim. This high figure reflects the fact that claims by employers injured or falling sick during the course of their employment may be very substantial. Indeed, it is not uncommon for some employers to seek indemnity of up to £10 million in order to safeguard their business against such risks.
Employers liability insurance, therefore, may be an essential element of insurance cover for landlords and an employee accident policy is unlikely to be any substitute.