Occupiers insurance when Letting units

[AJ123]

I let a few units in the side of a barn for small businesses/ individuals needing space.
Currently I draw up my own licences based on one I had a solicitor do for me a few years ago, I have always had a clause in the licence requiring the occupier to have public liability insurance. I have a new tenant lined up who is saying as he’s a private individual he shouldn’t have to have PL insurance,
my view is if a member of the public (guest of the tenant or not) walks in to his unit, trips over something and wants to sue, I’d rather the tenant had PL insurance. Insurance of his possessions is explicitly his responsibility in the agreement, normally on a household policy you get somePL cover with insurance of your possessions.

The tenant will have more or less exclusive use of the unit with locked door on the front, save for us having a key so we can access a fan controller on the wall at the back.

So thoughts please, should I insist on his having PL cover?

 

[robs1]

Is he running a business or just using it for his hobby/storage?

 

[Sharpy]

Find out what the cover will cost then tell him you are quite happy either way, but non public liability insured tenants pay standard rent plus double the insurance costs?

 

[AJ123]

Is he running a business or just using it for his hobby/storage?

just personal use for a hobby doing cars up that kind of thing

 

[Doing it for the kids]

All mine have their own PL and also get billed for my insurance on their unit.

was surprised when I first saw this (doesnt happen for residential) but it seems to be the norm for commercial

 

[robs1]

just personal use for a hobby doing cars up that kind of thing

Guess it's up to him then but anyone with a business who doesn't carry PL insurance is msd

 

[Nigel Wellings]

AJ123 is absolutely doing the right thing by insisting the tenant has his own PL Insurance. If the tenant starts a fire which then goes onto destroy your other buildings at least your Insurers can try to recover their money from the Tenants PL Insurance. Why should your Insurance premiums have to go up because the tenant has been negligent.
You can also have a situation where the tenant has liability for causing an accident on your premises due to something he has done but your PL Insurance will not pay out as you have not been negligent.