What Insurance Do Facilities Management Companies Need?

Quick answer

Facilities management companies may need public liability, employers liability, professional indemnity, tools and equipment, commercial vehicle, cyber, legal expenses and subcontractor controls, depending on the services provided and contract wording.

For the main quote route, compare cleaning contractors insurance for UK cleaning businesses, including public liability, employers liability, tools, key holding, property damage and contract requirements, or start a cleaning contractors insurance quote.

Insurers may ask about

Cleaning activities, premises cleaned, staff numbers, subcontractors, chemicals, working at height, equipment values, key holding, claims history and contract limits.

Common claims

Typical cleaning contractor claims can involve wet floor slips, water damage, chemical damage, damaged customer property, stolen equipment or employee injuries.

Client documents may include

Commercial clients may request public liability certificates, employers liability certificates, RAMS, COSHH assessments, subcontractor evidence and health and safety documents.

Why Facilities Management Insurance Is Broader

Facilities management companies often coordinate several services, such as cleaning, maintenance, janitorial support, waste, grounds, security liaison, helpdesk work, contractor management or minor repairs. That creates a broader risk profile than a single-service contractor. The company may be responsible for its own staff, mobile teams, subcontractors, client premises, service levels, advice, audits, access systems and property damage. Insurance should therefore reflect both operational work and management responsibility, especially where the FM provider signs contracts with detailed indemnities and service obligations.

• Multiple services and premises types
• Mobile teams, staff and subcontractors
• Client contracts, KPIs and service obligations
• Operational and advisory risk combined

Core Covers To Review

Public liability can respond to covered third-party injury or property damage claims. Employers liability is usually required where staff are employed. Professional indemnity may be relevant where the FM company gives advice, prepares specifications, manages compliance, audits suppliers or signs off service standards. Tools and equipment, commercial vehicle, legal expenses, cyber, fidelity, keyholding, management liability and environmental cover may also be relevant depending on the services, premises and contracts involved.

• Public liability and employers liability
• Professional indemnity for advice or management work
• Tools, vehicles, keyholding and fidelity
• Cyber, legal expenses and management liability

Contract And Subcontractor Requirements

FM contracts often contain detailed insurance clauses. They may specify GBP 5m or GBP 10m public liability, employers liability evidence, professional indemnity limits, subcontractor insurance checks, additional insured wording, waiver wording and notification duties. FM companies should also check whether subcontractors are bona fide subcontractors with their own cover or labour-only workers who may need to be treated differently. Keeping subcontractor certificates, RAMS, COSHH records, training evidence and claims history together can make client audits and renewals easier.

• Minimum liability and PI limits
• Subcontractor certificates and onboarding checks
• RAMS, COSHH and training evidence
• Contract notification and renewal duties

Building A Suitable FM Insurance Programme

A facilities management insurance review should start with a clear turnover split by service, details of staff, subcontractors, vehicles, tools, premises types, contracts, claims history and any advisory or compliance responsibilities. Insure24 can help UK FM companies compare suitable cover options and consider how public liability, employers liability, professional indemnity, subcontractor controls and specialist services fit the contracts being delivered.

• Prepare turnover split by FM service
• List employees, subcontractors and vehicles
• Review advice, audit and compliance duties
• Compare suitable FM insurance with Insure24