Public Liability insurance - what's covered
Also known as Property Owners Liability cover, it protects and defends the body corporate or HOA against claims resulting from loss or damage to property or injury, illness and resulting death incurred on or in relation to the common property including Employers Liability.
Examples of liability claims include damage from a gate closing on a car, injury resulting from slip and fall, and damage to clothing due to a fall.
The insured amount must be no less than R10 million, as required by the sectional titles legislation.
Some insurers offer 36 months' retroactive cover from the date of policy inception.
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What's NOT covered
What's NOT covered
Public Liability cover is not intended to be for the benefit of parties claiming against the body corporate or HOA. In this sense, the body corporate or HOA must never admit liability or lead a claimant to believe that a loss will be covered by the scheme's insurance policy. The recommended course of action is to immediately notify the insurer or insurance advisor about any event which may potentially give rise to a liability claim and to desist from responding to any liability claims.
Claims arising from economic losses are not covered by Public Liability insurance.
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What the law says about Public Liability insurance
The STSM Regulation 23(6) prescribes that a body corporate must take out public liability insurance to cover the risk of any liability it may incur to pay compensation in respect of -
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(a) any bodily injury to or death or illness of a person on or in connection with the common property; and
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(b) any damage to or loss of property that is sustained as a result of an occurrence or happening in connection with the common property, for an amount determined by members in general meeting, but not less than 10 million rand or any such higher amount as may be prescribed by the Minister in any one claim and in total for any one period of insurance.
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