Public Liability Insurance
Get covered against any third party claims against your business. Compare quotes from SA’s top providers and save.
What is Public Liability Insurance?
Public liability insurance is a type of business insurance that can cover third party claims against your business for bodily injury and resulting medical expenses, damage to property, and other losses. If a member of the public is injured or sustains losses due to your business, its employees, or while on the business property, the business owner or company could be held liable for the costs.
How Public Liability Insurance Works
This form of business insurance can be purchased as a standalone product or can form part of your insurance portfolio. It can cover the cost of claims made against the business for situations where the business is held liable for damages, losses, injuries, or even deaths.
The company can be held liable for events caused by the staff and employees, directors, and anyone representing the business. It can also include events that occur on your business premises. You can ensure you have enough cover by assessing risks.
You can also discuss your coverage with your insurer at length to ensure there is enough cover for any possible situation that may arise. The plan you choose should ideally cover legal expenses and settlement amounts. Before you sign the policy, you can read through the policy wording to make sure you understand the scope of your cover.
Every policy will have exclusions and other terms and conditions. For example, they may exclude cover for claims where the company wilfully caused damage or loss to persons of the public. They may also require you to take precautions.
Is Public Liability Insurance Compulsory?
In South Africa, public liability policies are not compulsory by law, but sometimes customers or clients may require public liability insurance before acquiring your services or in contracts and agreements with you.
Even though you don’t need this type of insurance policy by law, it is one an important type of business insurance. It is a good idea for most business types to get this kind of cover.
What Public Liability Insurance Covers
With this type of insurance, you can get cover when a client, supplier, member of the public, or other stakeholder institutes a claim against you for damages or loss. Sometimes, it can be because of business activities that have caused damage to someone’s property.
At other times, it can be that someone gets injured within your business environment. If someone experiences bodily injury, loss of income, property damage, or other losses, and your company is found to be liable, your coverage with the insurance company can help.
If someone takes legal action against you for such liabilities, many policies even cover the legal costs or settlement amounts up to an agreed amount. Once you have looked at your business risks, you may want to consider including other types of liability cover, such as product liability insurance or professional indemnity cover.
Who Needs Public Liability Insurance?
Most businesses can benefit from this type of liability insurance, from a sole trader to a macro-enterprise. Whether you sell motor vehicles or repair structures, if any event where a third party can claim against you could possibly occur, you need this type of cover. It can help you pay for medical costs, punitive damages, legal defence costs, professional advice, repair costs, and more.
If you aren’t sure whether your business is at risk for claims in connection with damages or losses, you can conduct a risk assessment. It can help you ascertain the level of risk for personal injury, accidental death, and events of damage or loss. When you better understand the risks, the possible financial losses, and your company’s legal in such situations, it will better detail how much cover you need.
Get Free Public Liability Insurance Quotes
We offer free insurance quotes from reputable South African insurance companies for businesses, and we make it easy. All you need to do is fill in the quick form at the top of this page. Our system then matches you with the ideal insurer for your needs. They will contact you and offer you a quote that is free of obligation!