Personal liability cover... and R4m for a dog bite
Your home contents insurance usually includes personal liability cover on your property and for any incidents that occur outside your home. By
The Supreme Court of Appeal (SCA) recently dismissed an appeal from dog owner Christiaan van Meyeren, who attempted to claim that he was not liable for injuries caused when his three dogs attacked garden and refuse collector Gerald Cloete. Van Meyeren had been ordered to pay a damages claim of R2.4-million.
His defence was that “someone” must have attempted to break into his property, breaking two padlocks and leaving the gate unlocked. However, the SCA ruling notes that the shackle of one padlock was so bent, it could not fit into the locking hole. Both padlocks were also extensively rusted and corroded and so unlikely to have been in use. The ruling goes on to say: “If there was an intruder, he appears to have been as elusive as the Scarlet Pimpernel.”
Danny Joffe, head of legal at Hollard Insure, says: “the most common personal liability claims are the dog bite claims. If your dog bites someone, you will be liable, and all costs relating to medical injuries, loss of income, pain and suffering and any scarring would have to be paid for by the dog owner.
“We recently settled a matter for over R4-million where there was a horrific dog bite which literally took the victim’s arm off at the elbow. We did not take it to court and managed to settle the claim, but you can see that these claims can be expensive.”
Malcolm Vining, distribution and marketing executive at PPS, says personal liability insurance is usually an add-on cover included in your home contents insurance policy.
Most policies include personal liability cover of R2-million to R5-million and PPS allows you to increase this cover to as much as R15-million or R20-million.
What does personal liability insurance cover?
Ernest North, co-founder of Naked Insurance, says a misunderstanding often comes about because personal liability cover is seen as an add-on to your home contents insurance.
“Personal liability cover provides financial and legal protection should someone claim against you or take you to court because they believe you’re responsible for an injury, loss or damage they have suffered. This means it could even cover an incident at the park or the shopping mall,” he says. However, North notes that your insurer will want to prove liability on your part.
He lists the following examples of incidents that could be claimed for under your personal liability cover: z Someone gets hurt in your home: For example, a friend breaks their ankle after falling into a ditch in your garden. A person or pet that is part of your household accidentally injures another person or pet: Your dog mauls your neighbour’s poodle (or the garden refuse collector) when you go out for a walk.
You accidentally damage someone else’s property or belongings: Your toddler dings a R5-million Lamborghini with a shopping trolley in the mall parking lot or a tree in your garden falls on your neighbour’s roof.
You accidentally damage your rented property: You forget to turn off the bath tap before going out. When you return much later, you find the whole flat flooded and the carpets ruined.
“In each of these cases, if you have personal liability cover, your insurer would either settle with the party claiming against you or defend the claim in court. If you did not have personal liability insurance, the legal fees and the settlement might leave you seriously out of pocket,” North says.
He points out that personal liability cover does not apply for: z Injuries or damage caused by someone who isn’t a part of your household; Injury or property damage caused by insured business activities;
Personal injury to yourself or a member of your household;
Deliberate damage caused to someone else’s property or intentional harm of another person;
Damage caused by your car (this is covered by third party liability on your car insurance); and,
Damage or injuries sustained as a result of an illegal activity.
Questions to ask when taking out personal liability cover: z What are the exclusions on the policy? z Does my cover only apply locally, or will it apply if I travel?
Will my cover pay for any legal costs in addition to physical damage costs?