SPECIALIST LIABILITY
"Safeguarding your interests first."
No matter what industry your client is in – a financial institution, a manufacturer, a retailer, or distributor or even a professional individual – it faces numerous risks. These could be anything from employee dishonesty and theft issues to incorrect funds management or professional negligence.
Our Specialist Liability policy protects your business from these risks, with cover that includes commercial crime, cyber risk, directors and officers liability, employment practices liability, financial institutions, general liability, medical malpractice indemnity, pension fund trustees’ liability, and professional indemnity.
Specialist Liability Offerings
Commercial Crime
It is estimated to cost the South African economy billions of Rands annually. Year on year statistics show an upward trend in the number of commercial crimes reported. A growing risk never has it been more important for companies to protect themselves against direct financial loss as a result of theft and fraud.
Cyber Risks
Many organizations believe that their firewalls and anti-virus programs provide them with sufficient protection against cyber risks such as viruses and hacking. The shocking reality is very different: every day more than one million people and organization's fall victim to cyber-attacks.
Almost every company has some kind of network, database or online presence that puts it at risk. The complexity of the on-line environment makes it impossible for most businesses to address these risks, or even appreciate how serious the threat is.
Directors' and Officer's Liability
King III and The Companies Act No. 71 of 2008 renders Directors’ and Officers’ Liability Insurance crucial for all companies regardless of size or incorporation. Directors and Officers now find themselves in a far more onerous position than ever before, with legislation holding them more accountable for any wrongful act or negligent actions, as well as breaches of their fiduciary duties.
Employment Practices Liability
In today’s increasingly litigious business environment, employing staff is inherent with legal exposures and employers need cover against allegations of unfair labour practices. According to the Labour Relations Act, employers can be taken to the CCMA, Bargaining Council or Labour Court for various labour practices. Frighteningly, courts may award as much as 24 months’ salary to the aggrieved employee.
Profit companies (public and private) and non-profit companies are therefore all at risk of being sued by current, past and potential employees, and even the most efficient HR departments may fall victim to inconsistent decision making at the dispute resolution forums.
Financial Institutions
The introduction of stringent corporate governance requirements stipulated in the new Companies Act and King III report, and increased consumer awareness due to the Consumer Protection Act, has highlighted the need for financial institution insurance that is backed by strong and stable security, to manage and mitigate a multitude of risk exposures daily.
General Liability
In the ordinary course of business, a company could cause damage to the property of others, or even injure people. As a result, the company may become legally liable for the directors, subcontractors, customers, suppliers and shareholders - to name just a few. Even though the company should do everything it reasonably can to prevent liability, it is simply not practical for a business to anticipate and prevent every possibility.
If the company is at fault, it may be sued for damages. This General Liability policies have been designed to pay for these damages - even if the matter is settled out in court. The policies would also cover legal costs incurred in defending the matter.
Medical Malpractices Liability
Given the nature of the procedures performed by medical professionals, and the multitude of scenarios where negligence or an accident may occur, it is essential that individuals working in the medical industry have insurance should anything go wrong as a result of their actual or perceived negligence or malpractice.
As South Africa becomes an increasingly more litigious society, so medical practitioners, and establishments performing medical procedures, will provide a more active source of litigation to the legal profession. The result is that the number of medical malpractice claims, in excess of R5m, has rocketed by 900% over the past decade. The new Consumer Protection Act (CPA), which came into force on 01 April 2011, only further increases medical professionals’ exposure due to the stringent requirements of the Act, as well as heightened consumer awareness.
Pension Fund Trustees Liability
A multi-billion Rand industry, in South Africa there are up to 3500 registered funds with over 11 000 000 members and investments exceeding R2000-billion. Responsible for billions of Rands and effectively people’s lives, it’s for good reason that the Pension Fund Act places onerous responsibilities on trustees, and they may be held personally liable if their fund suffers a loss as a result of their own actions or failure to act. Effectively this puts a trustee’s entire personal estate at risk and if a judgement goes against them, they could forfeit all their attachable assets.
Professional Indemnity
In today’s service-driven economy, it is crucial for professionals, and those providing specialist advice, to employ specialized knowledge, skill and care in their business dealings with their clients.
If a person provides advice or a service to another and carries that work out negligently, they could be held legally liable for the consequences thereof. Accountants, architects, engineers, and lawyers, amongst others, include professionals who are often exposed to litigation. Many of the suits brought against these professionals are as a result of damages sustained due to the professional’s failure to perform according to the generally accepted standards in their respective fields.
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