Broadform Liability
SHA are specialists in providing broad liability solutions for businesses in the larger commercial and corporate environment. Any organisation or entity operating in today’s business environment is exposed to liability claims and requires a comprehensive liability insurance program. This business unit comprises a team of highly skilled specialists with a focus on providing tailored liability-based solutions for complex risks across multiple industries.
Broadform liability insurance really provides protection for a business for legal liability to pay damages arising out of injury or damage caused to third parties or their property during the performance of the business. This liability policy is extremely broad and has many sections of cover and extensions (read about them under the Cover tab below).
SHA also provides cover for SME's (where the turnover is below R50m) in the SME Evolution Liability product available here
Core Liability Cover
Our broadform liability policies are tailored to suit each business's specific requirements. There are many sections and extensions of cover available, some of which may be more applicable than others. That's why it's important that the insurance broker has a greater understanding of the specific exposures.
The general liability (GL) section includes:
- Property owners liability
- Tenants liability
- Spread of fire liability
- Tool of trade liability
- Pollution (other than gradual migration)
This section (GL) can be extended to include:
- Contracting liability
- Goods on the hook
- Loss of documents
- Care, custody and control
- Contractors’ and principals’ support
The products liability (PL) section includes liability for the consequences of defective workmanship and may be extended to include:
- Product inefficacy
- Product recall and guarantee
- Mitigation expenses
- Exports worldwide
Extensions of Cover
There are a range of other extensions that can also be added to the policy:
- Employers Liability automatically includes Employee to Employee
- CAPEX Contracting Liability
- Plant Hire Liability
- Wrongful Arrest and Defamation
- Statutory Legal Defence Costs
- Pure Economic Loss
- Advertising Liability
- Copyright Infringement
- Defamation Liability
- Warehouseman’s Liability
- Carriers Liability
- Negligent Gratuitous Advice
- Excess of Loss Liability
- Incidental Medical Malpractice
- Claims Preparation Costs
Again, it's really important that as the insurance broker, you understand your client's business so the correct extensions can be added to the insurance program.
Other important notes
- We are able to underwrite up to limits of R1 billion
- There is no contractual liability exclusion under the General and Products Liability sections.
- Worldwide Jurisdiction.
- Defective Workmanship which is a cover under the Products Liability section of a policy only excludes cover for damage to that part of the property upon which the Insured has been working and only if the damage results directly from such work.
- SHA also offers specialist covers for security companies as well as excess of loss and umbrella policies
Want to know more?
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ClaimsWhy place your broadform liability coverage with SHA?
Solutions
Unique, bespoke solutions carefully crafted for complex risks.
Longevity
Liability claims can take years to manifest and then even longer to be resolved. SHA has over 35 years of experience in handling long tail claims effectively.
Strength
SHA is a division of Santam, southern Africa's largest short term insurer.Broadform Liability FAQ's
What key information is required to get a quote?
SHA only transacts business via licensed insurance brokers. A proposal form is ideal and can be downloaded here on our website. See the downloads block on this page.
If you don’t have a form yet, you can start by obtaining:
- Insured’s name
- Full business description
- Estimated annual turnover (including detailed splits of exports outside SA)
- Full list of liability incidents and claims
- Contract conditions.
Any additional information that helps paint a clear picture of the risk should also be submitted such as brochures, website details, surveys etc.
Are there any liability risks that SHA doesn't write?
There aren't many risks that we don't have an appetite for and whilst we do try to find solutions for almost every exposure, the list below covers the main ones:
- Labour brokers
- Animal feed and agricultural chemicals
- Tour operators and adventure sports
- Off-shore (e.g. oil and gas)
- Schools
- Manufacturers of products for children or infants
Where do liability claims come from?
Claims generally come from any of the following:
- third parties with whom the client enters into a contract
- third parties where injury or damage is caused by the insured
- depending on the insured’s type of operation, claims can actually come from anyone and anywhere in the world
Does the Insured only need Products Liability cover if they manufacture a product?
No. If the Insured sells, supplies, treats, distributes or repairs a product they should purchase Products Liability cover.
Can the Insured add their operations that are outside of RSA to their RSA Liability policy?
It will all depend on the legislation in the territory in question so this must be investigated first as it is often the case that legislation requires cover to be placed in territory.
Will the liability policy cover the Insured’s own financial loss?
By and large a liability policy is there to protect the Insured for their legal liability towards third parties and not to protect the Insured for their own financial loss.
Does my liability policy cover the contract I am entering into?
Liability policies do have exclusions and will not necessarily cover everything that an Insured may be responsible for contractually. Fines and penalties are a good example of what an Insured may be responsible for contractually but which is not covered by a Liability policy.
Should an incident still be reported to insurers if the insured thinks they aren't liable or responsible?
A Liability policy not only responds to claims from third parties where the Insured is legally liable but will also pay to defend an Insured where they are being held liable for a matter. Once the allegation is made by the third party, the insured will be obliged to mount a defence so it is advisable to report all incidents.
