Obligations in the Deeds/Lease

A freehold property may be subject to covenants restricting what can be done on the land. These are usually imposed by and enforced by owners of neighbouring land.

A leasehold interest will also involve restrictions on what can be done on the land and, again, those restrictions are designed in part to protect the landlord from claims by neighbours.

Potential Grounds for Compensation

At common law, an occupier of land must not cause nuisance or annoyance to neighbours including smoke, noise or smells. Additionally, an occupier who has or does dangerous things on his land has strict responsibility if they escape to the property of his neighbours and cause harm. Claims for damages may result. You may also be liable to pay damages if anyone on your land is injured by reason of anything on the land or its condition, e.g. an unsafe structure or process.

Insuring against Risks

Apart from employers' liability insurance it is not a legal requirement to obtain insurance. However, public liability insurance is in practice a commercial necessity. Your exposure should be discussed with your broker on an ongoing basis. Public liability insurance usually covers claims relating to injury, disease or damage to property of a third party, but excludes injury to your own employees and damage to your own property.