Liability Insurance: A Basic Business Necessity

Liability cover is a necessity for any business owner as without such cover, it can potentially have a devastating effect on a thriving business. Liability insurance provides protection from an array of risks and as a highly specialised insurance field; it is advisable to partner with an experienced and knowledgeable broker.

Today, business owners can potentially be held liable for a host of injuries, losses or damages to a person or their property caused by the operations of their business, products or advice dispensed. Professional people managing concerns such as medical practices or law firms face an increasing risk of claims involving negligence, omissions or general breaches of professional duty. Specialised liabilities are essential in this day and age.

Business owners regularly underestimate the potential cost of litigation and are often found to be unprepared for such incidents. One of the reasons for the increase in litigation is the public having broader access to information with regards to their legal rights and public liability. The downside of this publicly available information is that it increases the likelihood of fraudulent activity such as fake or exaggerated claims.

A business may be held liable for any harm caused to a person, or the loss or damage to property as a result of an accident or negligence. As these regrettable and unforeseen incidents can happen at any time, it is imperative that your business is fortified with liability cover to ensure that it can survive litigation by being able to afford the necessary legal defence costs.

The following specialised liability cover is available through your Garrun broker:

Product Liability provides cover for damage or injury to third parties occurring as a result of defective products. This cover is best suited to business owners who are involved in the supply chain of products.

Defective Workmanship insurance provides cover for injury or damage caused to a client or their property as a result of defective workmanship such as repairs or maintenance or faulty installations.

Directors’ and Officers’ Liability provides cover for senior management where they may be held personally liable for any damage or loss caused by business operations. Businesses faltering or becoming insolvent due to perceived bad decisions by management are also covered.

Product Recall Insurance provides cover for costs such as customer notification, shipping costs and disposal costs due to a voluntary or involuntary product recall.

Employment Practices Liability Insurance covers an employer's legal expenses and other costs following a reinstatement order made against it by the CCMA, Bargaining Councils and Labour Court for unfair labour practices.

Professional indemnity cover is intended for qualified business owners offering a professional service or advice to their clients. It provides cover for any legal costs and other expenses required to defend negligence or malpractice claims including any compensation payable. An accident or omission may potentially cause financial loss to the client or patient - professional indemnity cover aims to protect the assets and reputation of the business owner.

Garrun offers both business liability and specialised liability cover.

Contact your closest Garrun broker for more information or to get a quote for comprehensive business cover.