What public liability cover pays for, and what it leaves out

Public liability cover is meant to pay the legal costs and damages when a member of the public is injured, or their property is damaged, because of your premises or the work your business does and you are held responsible. It does not cover your own staff or financial loss from advice. The schedule sets the limit.

What is public liability cover for?

It answers claims by people outside your business. The business hub says it suits any business the public walks into or that works on other people's property: shops, restaurants, salons, venues, tradespeople and contractors, manufacturers with visitors, and mobile businesses that operate at clients' homes.

Think of two situations:

• Someone comes to you. A customer slips on a wet floor, or a delivery driver is hurt by a falling shelf.
• You go to someone. Your team damages a client's ceiling, or a ladder scratches a neighbour's car.

In both, a third party says your business caused the harm and wants you to pay.

What does it usually pay?

According to the hub, two things:

1. Legal costs. The costs of dealing with the claim and, where it goes that far, defending it.
2. Damages. What you are found liable to pay, or what is agreed in settlement, for injury or damage to property.

Both are subject to the limit on the schedule and to the excess, which is the part of a loss you carry yourself. The wording may also set conditions on how a claim must be reported and settled. Read them before you need them.

Who is not covered?

Public liability is for people who are not your staff. Section 35(1) of the Compensation for Occupational Injuries and Diseases Act 130 of 1993 says that no action lies by an employee, or a dependant of an employee, against the employer for damages for an occupational injury or disease resulting in disablement or death, and that no liability for compensation arises for the employer except under that Act. In the hub's words, injuries to employees at work fall under the Compensation Fund.

Other things the section does not cover:

• Financial loss from advice or work. That is a professional liability matter. See professional liability or public liability.
• Your own property. Damage to your own building, stock or equipment sits in the assets section of a business policy. See what a business policy covers.
• Anything the wording excludes. Exclusions are in the wording and the schedule. Read them for the activities you carry out.

What is the limit and what is the excess?

The limit is the most the section will pay for a claim or in total, as the schedule states. The excess is what you pay first. Both are in the schedule, and neither is a standard figure. They are set by the policy you are issued.

Rule 11.1 of the Policyholder Protection Rules (Short-term Insurance), 2017 lists "any limit on the amount or amounts of cover" among the things that make an exclusion or limitation "significant", meaning one that may affect the decision of the average targeted policyholder to enter into the policy. Rule 11.3.1 requires communications about a policy to be in plain language and not misleading, and Rule 11.3.4 requires the information given to help the policyholder understand the policy's features and whether it meets their requirements. If you cannot find your limit, ask the provider where it is.

Does it apply when I work at someone else's premises?

Often the wording is written for the places where the business operates, and may deal separately with work away from your premises. The hub notes that landlords and shopping centres usually require cover in the lease, and larger clients require it before a contractor is allowed on site.

That makes your answers on the form important: where you work, whether you work at clients' premises, and what your staff do there. What insurers ask a small business explains why.

What details change the cover?

The hub says insurers price and word public liability on the type of business, where it operates from, how many people pass through, turnover, employees and claims history. Expect questions on each. A short list of what to have ready:

• what your business does, in plain words;
• the address or addresses where the public meet your business;
• whether you do work on other people's property and what kind;
• your turnover and how many people you employ;
• any claim history; and
• what your lease or contracts require.

Can I cancel if it is not what I expected?

For a new policy with a term longer than 31 days, Rule 4.2 gives a policyholder 14 days from receiving the policy contract to cancel, if no benefit has been paid or claimed and the insured event has not occurred. Rule 4.3 requires a refund of premiums, less the cost of any risk cover actually enjoyed, and Rule 4.4 gives the insurer 31 days to act on the notice. If your lease or contract requires continuous cover, arrange the next policy before you cancel the old one.

What should I do after an incident?

Do the practical things first: make the area safe, get help for anyone hurt, and write down what happened while it is fresh. Then:

1. Note the names and contact details of the person who was hurt or whose property was damaged, and of any witnesses.
2. Take photographs of the place, the damage and anything that played a part.
3. Keep the equipment or object involved, if you can do so safely.
4. Read the claims conditions in your wording. Many policies set conditions on how soon an incident must be reported and on admitting fault or agreeing to pay, so check yours before you say anything to the other side.
5. Report to the provider in writing and keep proof that you did.

Rule 17.8.3 of the Rules requires the insurer to tell a claimant the type of information it needs, where, how and to whom the claim must be submitted, any time limits on submitting claims, any excess and any administrative fee. Ask for those in writing at the start. Public liability claims: what happens follows the process through.

Can the same incident touch more than one section?

Yes. A fire that injures a customer and destroys your stock may touch the assets section, business interruption and the liability section at once. Each section answers its own part, on its own wording and limit. That is why the schedule lists the sections separately, and why a claim often needs more than one form. When you report an incident, describe all of the consequences, not just the one that seems largest.

How does Olvian fit in?

Olvian is a lead-referral service. You ask once, and the request goes to licensed providers who pay Olvian a fee and call you back. Olvian is not an insurer, broker or adviser, and does not recommend what limit to hold. The provider who calls explains your options.

Sources

Checked on 31 October 2026. This guide is information, not advice.

• Compensation for Occupational Injuries and Diseases Act 130 of 1993, section 35
• Safety at Sports and Recreational Events Act 2 of 2010, section 25: Public liability insurance
• Policyholder Protection Rules (Short-term Insurance), 2017, Rule 4: Cooling-off rights
• Rule 11: Disclosure
• Rule 17: Claims management