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Public Liability Insurance Cover for Short-Term Lets

The ASSC has received clarity regarding the level of Public Liability cover required for short-term lets.

“The draft Licensing Order, consulted on in 2021, required Public Liability Insurance cover of not less than £5m. Amendments were made following feedback received during the consultation about the costs of £5m cover – particularly for those letting their own homes.  We removed the specified figure from the Licensing Order and instead require adequate insurance, and clarified that public liability insurance need only be in place for the time that guests are staying at the premises. Further detail is included in the Policy Note (link and text below):

The Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022 – Policy Note (legislation.gov.uk)


  1. Paragraph 15 makes it a mandatory condition for the host to ensure that there is valid buildings insurance in place for the premises for the duration of the licence. It is also mandatory to have valid public liability insurance for the premises for the duration of each short-term let agreement (i.e. whilst guests are staying at the premises).
  2. Insurance is important to protect the interests of the owner of the premises (and adjoining residents and owners) and the guest, should any accident, damage or injury occur. Note that the insurance may be arranged by someone other than the host (for example the owner of the premises, where the host is not the owner, or the platform). The fact that public liability insurance need only be in place for the time that guests are staying at the premises makes it easier for hosts to use public liability insurance provided by platforms as part of their booking service. The Scottish Government intends to recommend in guidance that public liability insurance should be at least £2 million for whole property lets and that home sharers should seek advice.”

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