SMEs benefit from new broad-form CGL Cover

With increasing litigation in South Africa, the pending promulgation of the Consumer Protection Bill, as well as growing opportunities for SMEs to do business with large corporate clients and to export to foreign markets, South African retailers, manufacturers, distributors and service providers need broader and more comprehensive legal liability protection.

"Many of the liabilities faced can all be transferred into the Camargue General Liability (CGL) insurance safety net," says Simon Colman of Camargue Underwriting Managers. "CGL insurance seeks to provide enterprises with cover against the legal defence costs and potential damages associated with litigation following death, injury or loss suffered by third parties including neighbouring businesses, government institutions, members of the public, visitors and clients.

"Every interaction between people results in a myriad of duties, rights and obligations. The failure to meet one's responsibilities during these interactions, through some unforeseen event, can result in legal liabilities. In the business world, these potential liabilities can be the difference in continuing to be a 'going concern' versus bankruptcy. Expensive litigation as well as potential damages imposed by the courts have resulted in many a small business having to close its doors," explains Colman. "The purchase of broad liability insurance with real risk management tools is no longer a 'nice to have', it's a minimum requirement," says Colman.

The Camargue Broad-form General Liability insurance will even extend to cover certain contractual liabilities, professional advice, goods in the insured's custody and pure economic loss. The services of risk management professionals who specialise in product quality control, contract law and risk minimisation will be included in the CGL insurance packages.