In our last blog, we delved into the topic of Business Insurance, with a view to understanding why having the correct business insurance is so important.

In this blog, we’ll be taking a closer look at the main forms of liability and professional indemnity insurance that our team can assist with.

General Liability Insurance:

Liability insurance protects the financial interests of companies and business owners in the event of lawsuits or third-party claims. This type of insurance covers the risk of your business being sued due to human error, product issues, customer
discontent, or other factors.

The Consumer Protection Act has changed the way businesses interact with their customers. The concept of no-fault liability for all parties involved in the product supply chain is possibly the most radical example of this change, while the new
labelling and plain language regulations mean that even products which are not defective can be classed as “high risk”.

Recent legal history has shown that under the CPA, large awards against businesses that are found to have caused third-party injury or damage are becoming increasingly common.

The CPA has increased consumers’ awareness of their rights, and has also given the average South African access to inexpensive dispute resolution mechanisms.

This makes it more important than ever to ensure your business is covered against potential claims.

Liability overage can include:

• Public liability on a broad-form, non-accidental basis.
• Product liability, including defective workmanship and damage arising out of faulty design.
• Negligent advice which may arise out of poor sales advice or training.

A range of specialist (including product inefficacy, errors and omissions, pure economic loss, product recall and advertising and copyright infringement) and industry specific covers (such as custody & control, warehousing, carriers and contractors liability) are also available.

Professional Indemnity Insurance:

Professional Indemnity protects professionals, including those in the construction, legal, medical and financial fields, against negligence and other claims initiated by their clients.

This type of cover indemnifies professionals against losses resulting from a negligent act, or an error or omission.

This cover provides compensation for losses that occur due to:

• Breach of professional duty
• Breach of warranty
• Breach of trust committed in good faith
• Defamation and/or injuria
• Infringement of copyright
• Destruction or loss of any documents entrusted to the professional insured
• Defense costs that may arise in the event of a third party claiming against the insured

If a professional provides advice or a service and is accused of carrying that work out negligently, they could be held legally liable due to a breach of duty of care, or a breach of contract.

Accountants, architects, engineers, and lawyers are just some of the professionals who can be exposed to this type of litigation. Lawsuits can include recovery of damages sustained due to a failure to perform according to the generally accepted standard for the profession.

Heightened consumer awareness, coupled with tough economic conditions, has seen a sharp rise in lawsuits against professionals – and even where there has been no proven error resulting in liability, a third party may initiate a suit against a professional purely as a result of the project or contract not being successful.

When you take out professional indemnity or liability insurance through Genesis Insurance Brokers, your cover can include a range of additional value-added risk management services as part of your policy, including:

• CPA-specific contract vetting and assessment.
• CPA workshops for sales & customer service staff.
• A dedicated commercial law help-line for advice relating to CPA and other spheres of litigation.
• Industry specific quality control and assessment services for the Security, Agriculture, Food and other sectors.

You can also get access to expert arbitration services, allowing you to work towards the equitable resolution of disputes and avoid lengthy, costly court battles; as well as crisis communication support to manage public relations during times of crisis, and protect the reputation of your business.

As a professional, you’ll understand the importance of dealing with other professionals who you can rely on. With over 100 years of experience in the insurance industry, trust the team at Genesis to provide exactly the right cover for you.

Contact the Genesis Brokers team today for a personalised business insurance quote, or to find out more about Genesis Assist benefits. We’ll guide you through the process and make sure you have the cover you need, no more and no less.