Increasing vigilance as the festive season draws closer
As we move closer to the festive season, shopping malls are bracing themselves for increased traffic as stores hold massive sales and the public is eager to get their Christmas shopping done. This is also a time for increased criminal activity in shopping malls, as per a press release received, which begs the question: do shopping malls have adequate protection in terms of public liability cover?
Following the recent spate of mall robberies in Gauteng, the Institute for Security Studies (ISS) has warned business owners that they should brace themselves for an increase in robberies. This shifts the focus on the urgency of shopping malls to increase their capacity in this area.
Underestimating the risk
Simon Colman, Underwriting Executive at SHA Specialist Underwriters, feels that property owners often underestimate the value of public liability cover with many businesses buying less than R5 000 000 worth of cover. “With crime becoming a countrywide problem, it is imperative for shopkeepers and property owners to review and revise the limit of their liability cover to make sure it covers everything it is supposed to cover.”
With the recent robberies at iStores and other mobile phone stockists in malls, the public may be in the firing line and run the risk of unwillingly being caught in the crossfire of a daring escape. Public liability policies cover the legal fees to defend the insured if it is alleged that they are liable for any injuries or damages sustained by customers during a robbery, “If the defence is unsuccessful, the damages awarded by the court are covered, though some liability insurers will settle if the prospects of successful defence are poor,” explains Colman.
He adds that, “a robbery does not automatically impute liability onto the property owner or shopkeeper. Some unknown party is actually responsible for perpetrating the crime itself and would of course be criminally and civilly liable for the injuries and damages.”
Increasing vigilance
Colman says the question that retailers need to ask is if they have done all that they could reasonably be expected to do in order to keep their customers safe. This is hard to achieve if one is facing an unexpected explosive situation. “If retailers have been negligent in carrying out their duty of care to customers, it is possible that liability could attach. For example, if a security system prevents the exit of customers when a robbery is in progress, one could argue that this puts customers in harm’s way.”
From a shopping mall tenant’s perspective, one could argue that the attraction for a retailer to be in a shopping centre as opposed to those not in a shopping centre, is due to the provision of security, says Colman. “This could justify action brought by the tenant against the property owner for not providing adequate security. Similarly, a shopping centre that is repeatedly hit by robberies could see it’s foot traffic affected, which in turn could lead to a drop in revenue causing retailers to seek recovery from the landlord. If negligence on the part of the property owner can be established, and liability is not limited in the lease agreement, property owners may be held liable.”
Meeting growing demand
With the increased participation of multinational insurers in the local insurance market, the demand for corporate focused insurance products has increased. This is especially pertinent to insurers that come from markets where the public is more open towards litigation against corporate offenders.
Public liability policies must be written on a broad form basis to cover defence costs against any third party litigation. “These broad liability policies can even extend to cover the security companies contracted to guard the premises,” says Colman.
“It is advisable for shopkeepers to have their own policies in place, rather than assuming that they are covered by the overall policy of the shopping mall, as third party attorneys may target the property owner, the shopkeeper and the security company respectively in a suit,” concludes Colman.
Editor’s Thoughts:
The development of these policies and the type of cover you receive will be interesting to monitor as criminals get more brazen with their attacks. Please comment below, interact with us on Twitter at @fanews_online or email me your thoughts [email protected].
