Imagine this: a delivery driver slips and injures himself outside your store. Before you’ve had a chance to react, his attorney is already on the phone. Moments later, a pallet of stock topples onto a supplier’s bakkie, smashing the windscreen, and yes, their attorney is calling too.
Without public liability insurance, incidents like these could have serious financial consequences for your business.
What is public liability insurance?
Public liability insurance is a type of business insurance that covers:
- Compensation costs if a member of the public is injured on your premises or by your products/services.
- Property damage caused to customers, suppliers, or other third parties.
- Legal fees and expenses associated with defending claims.
It’s one of the most common (and essential) forms of insurance for small businesses, but it’s equally important for large companies that deal with the public.
Why businesses shouldn’t ignore it
Many business owners believe legal claims are unlikely to affect them, but the reality is that risks are everywhere. Even minor accidents can lead to major financial claims, and without proper public liability cover, these incidents could threaten the survival of your business.
Things to consider about public liability insurance
When choosing public liability insurance, it’s important to consider how much cover your business truly needs. Premiums can vary depending on your industry, specific risk factors and the type of policy you select. While public liability insurance isn’t legally required in South Africa, it can be the difference between staying afloat and shutting down after a claim.
It’s also worth noting that this type of insurance doesn’t cover employees. For that, you’ll need employers’ liability or worker’s compensation. To ensure your policy matches your actual risk profile, professional advice and tailored solutions are essential.
Why choose Hollard for public liability insurance?
At Hollard, we understand the risks businesses face every day. That’s why our business insurance solutions are designed to:
- Protect you against third-party injury and property damage claims.
- Cover legal expenses if a lawsuit arises.
- Scale to suit both small businesses and large corporates.
Get the right public liability insurance for your business today with Hollard and protect your livelihood from unnecessary risk.
FAQs about public liability insurance
Is public liability insurance mandatory in South Africa?
No, it’s not legally required, but it is strongly recommended for businesses that interact with customers, suppliers or the public.
Does public liability insurance cover my employees?
No. It protects you against third-party claims only. For employees, you’ll need separate worker’s compensation or employers’ liability insurance.
How much public liability insurance do I need?
It depends on your industry and risk profile. A small café may need less cover than a construction company. Speak to a licensed broker or insurer for tailored advice.
Disclaimer
This article provides general information only and should not be considered financial advice. For tailored assistance, please consult a Hollard-accredited financial adviser or a licensed financial professional registered with the Financial Sector Conduct Authority (FSCA).
