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Liability Class

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Liability Classes:


1. Public Liability


The Public Liability policy provides coverage to the company against third party legal liability arising from accidents caused by you or a person in your employment.


What it offers:


This policy only covers losses arising from lawsuits arising from third party accidental bodily injury or damage to property.




2. Employers Liability


The Employers Liability insurance policy is somewhat alike to the Workmen's Compensation policy in that it also provides cover for  employees against injury while on the job and indemnifies your legal liability to your employees should they get injured.


What it offers:


In addition, the EL policy protects employers against all lawsuits as a result of negligence on the employer’s part in not providing a safe working environment for its workers thereby resulting in the injury or death of the worker. In addition, the policy will also pay for legal expenses, with the company’s written consent, while defending the lawsuit.




3. Product Liability 


The Product Liability policy protects manufacturers, exporters and trading companies against any loss, damage or injury caused by a particular product.

In today’s competitive business environment and in the face of rising consumer rights issues, companies are becoming more & more susceptible to product liability suits. In addition, retailers of products and manufacturers that use products which form part of work in progress or are “spec’d-in” the final product are also requiring that their suppliers have Product Liability insurance in case of product failure lawsuits, bodily injury or property damage. In terms of international trade, this policy is becoming more pervasive.


What it offers:


The policy provides cover for the following circumstances:


  •       Legal expenses
  •       Investigative work necessary to verify the cause of injury and/ or damage
  •       Damages awarded by court
  •       Liability in terms of negligence, breach of warranty and under strict liability


            Negligence is used to mean failure to exercise reasonable care in the manufacture of a product. Breach of warranty, on the other hand is the breach of an implied warranty that the product is fit and suitable for its intended use for which it was manufactured. Lastly, strict liability assumes that the manufacturer and/ or distributors are at fault and the onus to prove otherwise is on them.Therefore, the policy provides financial protection to the Insured(s) and also to facilitate trade.




4. Professional Indemnity 


A Professional Indemnity policy covers professionals such as solicitors, accountants, engineers and doctors/ surgeons from lawsuits in line with carrying out their duties. As lawsuits can be quite hefty, it is best to get some sort of protection.


What it offers:


Professional Indemnity Insurance will indemnify a “professional” against legal liabilities for damages and claimant's costs that came about because of negligence, error or omission during the course of your duties or business. 




5. Director’s & Officer’s Liability (D & O)


A D & O policy is designed to protect Directors and Officers of a company against personal liability that they may incur in respect of amounts which they are liable for, in respect of claims made against them arising out of the performance of their duties. It is becoming more apparent to directors (esp. of listed companies) to obtain this form of insurance to protect themselves from claims made against them while discharging their duties on behalf of the company they work for.


This policy is taken by the directors to protect their personal assets, defend their good name and standing, provides financial protection to the company if taken with a Company Reimbursement policy & allows for directors to undertake commercially justifiable risks.


These are some examples of the types of personal liabilities are:-


  • Civil Damages or Settlements
  • Financial Losses suffered by third parties
  • Defence Costs


The claims process begins when the “covered persons” or “directors” are served with a notice/writ/summons/letter/ alleging that they have committed “wrongful acts” in the form of error, omission, misstatement or misrepresentation whilst in their capacity and whilst during the period of cover under the insurance policy.