As a responsible construction company owner, you know the importance of insuring your plant and making sure that your other necessary policies are in place with CivilSure. But did you know that the number of instances of – and the size of – liability claims litigation is higher than ever, and climbing? Before we make sure that your business is protected against this kind of litigation with Construction liability cover, let’s first take a look at why it is happening more often.
One of the main reasons that liability claims litigation is gaining traction in South Africa is the fact that individuals who could not previously afford to hire an attorney can now do so under the Contingency Fees Act 66 of 1997.
Any person who wishes to engage the services of an attorney must be able to pay for these services. A contingency fee arrangement means that an attorney may represent a plaintiff and conduct litigation on their behalf. The attorney carries all costs involved on the condition that, if the litigation is successful, they can charge the plaintiff double their original fee or up to 25% of the compensation awarded to the plaintiff. These contingency fee arrangements have influenced the number of and the size of liability claims that end up in mediation or court.
Simply put, contingency fee arrangements mean that any person with a valid, legally reasonable claim can now instigate legal action against you. This means that you have to make sure that you have adequate liability cover in place. Along with other important factors, this type of policy provides cover to the contractor for their legal liability for the physical injury to a member of the public or their property while carrying out the activities of the business as described in the schedule of insurance. It is important to note that personal injuries sustained to your employees during the course of their duties will be covered under the Workman’s Compensation Fund and thus it is critical that you are in good standing with the Compensation Commissioner.
Contact us to make sure that you have the right policies in place to protect your construction company, and that they are up to date.
CivilSure provides niche risk solutions to the construction and civils industry. We pride ourselves on delivering world class customer-centric services and specialist advice. We specialise in Construction Guarantees, Contractors’ All Risk Insurance, Construction Liability, Professional Indemnity and Plant All Risk Insurance.
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