Companies can be held liable in terms of common law, statutes or contract for loss or damage caused to customers, the general public, suppliers and any other party for incidents caused by the negligence of employees or owners of the company in the course of running the business. Liability can arise from incidents arising from the general operation of the company, the products it sells, the work that it does, the services it provides, the advice that it gives and from the people it employs.
Even if you ar`nt liable, the costs of defending legal actions can be enormous. Insurers provide policies to protect you from most of these liabilities whatever industry or profession you are in and wherever you do business.
The business environment in South Africa is subject to a deluge of regulation for the protection of consumers, employees and other stakeholders, and, from an insurance perspective, the recent introduction of the Consumer Protection Act and amendments to the Companies Act open up substantial new vulnerabilities to liabilities.
Advances in technology also open a host of exposures that didn’t exist in the past and most companies employ new technologies, particulary data based technology.
This post was written by Shado