Sued? If it happens to you, who pays? Your insurance or you?
The short answer is, that depends on the extent of your insurance cover.
If someone sues you a standard house and car policy offer little protection, so buying extra cover is a good idea.
“People are unaware to what extent their cover is for personal liability,” says Gari Dombo, Managing Director, Alexander Forbes Insurance.
When people buy cover for their house, car or valuables, they are often also buying personal liability cover as part of these standard personal policies.
What sections of the policy relate to the type of action taken against me?
- Motor Liability is in the motor section
- Property owners liability is in the buildings section;
- Tenants liability and general liability (home and away risks) is in the contents section
“Since each insurer words things in a different way, it is not easy to find where your liability cover appears in the policy. And what the exclusions area,” says Dombo.
However, most policies cover you and your family for damage to property as well as causing bodily injury or illness to a third party. Get free Home insurance quotes online for more information.
There are standard exclusions, for which you could get sued
- The use of firearms
- Liability arising from your job, business or profession
- Compensation required by vehicle insurance laws
- Gradual pollution of a neighbour’s borehole water
- Liability accepted through contract
Extended Personal Liability (EPL) cover also increases the insured amount. The extra cover offered can be as high as R50 million.
Furthermore, you can only buy (EPL) cover once you already have the other plans in place. As such, it only extends the existing cover and does not replace it.
Unlike your existing cover, (EPL) is not only to bodily injury or damage to property, it also includes wrongful advice. If you defame or slander people too.
Examples of incidents we can get sued for:
- Giving a friend advice on finance which causes loss to them
- If you defame another person or slander them
- Causing the wrongful arrest of a third party
- Injuring someone while travelling overseas in a hired car
- Gradual pollution of a water source
These examples illustrate just how exposed we are to liability. And for which we are probably not covered by our existing policies.
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Many insurers may increase the limit of cover without increasing its scope. It’s essential that you inquire whether your Extended Liability includes more than primary cover and includes cover if you are sued.