For many businesses and organisations, offering parking is simply part of the day-to-day operation. Whether it’s a forecourt at a shop, a rear yard for staff, or a small area for customer vehicles, car parks are often taken for granted and typically seen as functional, low-risk spaces that don’t require much attention. However, this casual approach can be a costly mistake. The reality is that if you own or control a car park, you may have a legal and financial responsibility that goes far beyond just providing space for vehicles.
Many property owners don’t realise that allowing people to use a car park, even informally or free of charge, brings with it a duty of care. Accidents, damage, and injuries do happen in car parks more often than people think, and without the right car park insurance in place, the costs of a claim could be significant. Understanding your responsibilities is essential if you want to protect yourself or your business from unexpected legal and financial trouble.
The Overlooked Risk of Everyday Spaces
It’s easy to assume that a car park, especially a small one, is relatively safe. After all, cars go in, they park, and they leave. What could go wrong? But the reality is quite different. Incidents such as trips and falls, vehicle damage caused by surface defects, injuries from loose fencing or poor signage, or even slips during icy weather are all real risks. If a visitor is injured or someone’s vehicle is damaged while on your premises, and it’s found to be due to poor maintenance or lack of safety precautions, you could be held liable.
These aren’t just hypothetical situations. A broken kerbstone or a pothole can lead to a claim. A customer slipping on wet leaves or an icy patch could pursue compensation. And it doesn’t matter whether you charge for parking or not, the responsibility to maintain a safe environment still applies.
Why Standard Insurance May Not Be Enough
One of the most common misconceptions is that a general business insurance or landlord insurance policy automatically covers all aspects of a premises, including any external parking areas. While some policies may include limited cover, many require specific details about car parks to be declared and listed. If your insurer isn’t aware that your property includes a car park used by the public or by visitors, there’s a real risk that any claims related to it could be rejected.
The key type of insurance needed for a car park is public liability cover. This is what protects you if someone is injured or suffers property damage due to negligence on your part. Without it, you could be facing legal bills and compensation costs entirely on your own. For those who own land but do not operate a business directly from it, property owners’ liability insurance may be more appropriate, offering similar protection tailored to the role of the landowner.
If you employ anyone to maintain or supervise the car park, even on a part-time or casual basis, you may also be legally required to hold employers’ liability insurance. This applies whether the worker is a cleaner, security staff, or grounds maintenance provider. Failing to have the correct cover in place can result in fines and complications if an incident occurs.
Who Needs to Take Notice?
Car park liability isn’t just a concern for shopping centres or public parking operators. It applies to a wide range of businesses and organisations. A café offering customer parking at the front of the building, a community centre with a gravel car park at the rear, or a landlord providing off-street parking to tenants, all of these are scenarios where insurance should be reviewed carefully.
Even if the car park is not the main feature of the premises, or if it’s rarely used, the legal duty of care still exists. Anyone entering the area, whether on foot or in a vehicle, is owed a basic level of safety and consideration.
Legal Responsibility and Your Duty of Care
Under UK law, specifically the Occupiers’ Liability Acts of 1957 and 1984, those in control of premises have a legal obligation to take reasonable steps to ensure the safety of visitors. If you control a space, including a car park, and someone is harmed because you failed to take appropriate action to prevent a known hazard, you could be found negligent.
This duty applies whether you own the land outright or lease it, and whether it is used regularly or only occasionally. Even if someone is trespassing, in some cases, you may still be liable if a known danger wasn’t addressed. In shared properties or developments, such as office parks or retail units, the lease agreement usually sets out who is responsible for maintaining shared spaces. It’s important to know exactly where your responsibility begins and ends, and to ensure your insurance reflects that.
Managing Risk, Protecting Peace of Mind
Alongside having suitable insurance, good maintenance, and proactive risk management are vital. Regular checks of your car park can help identify hazards before they cause harm. Simple actions like repairing potholes, keeping surfaces free of debris, maintaining adequate lighting, and ensuring signage is clear can all reduce the chance of an incident occurring. If you do have contractors performing work on the site, it’s also wise to check that they carry their own insurance.
In the unfortunate event of a claim, having documented records of inspections and maintenance work can demonstrate that you took your responsibilities seriously. This can be particularly valuable if there’s ever a dispute over liability.
Is It Time to Review Your Cover?
If you own or operate any premises that include a parking area, now is the right time to review your insurance. Many claims arise not because businesses are careless, but because they weren’t aware they needed specific cover in the first place. A quick discussion with an insurance specialist could clarify whether your existing policy includes all necessary areas or whether a tailored policy would offer better protection. At Ashburnham Insurance, we provide cover for a wide range of property owners, businesses, and operators who need protection for car parks, whether attached to a building or freestanding. With expert guidance and straightforward service, we help you understand your risks and ensure you’re covered before problems arise. For more information or a quote, visit ashburnham-insurance.co.uk or call FREEPHONE 0800 1696137.