Liability Insurance

Public Liability Insurance
A general liability insurance will indemnify the insured against her or his legal liability to third parties for both accidental body injury and loss of or damage to property arising from or in connection with the business insured for example a factory owner faced with risk of escape of gas causing bodily injury.

There has been an increased awareness of the average citizens of their rights to compensation in case of negligence by other parties and the duty of care owed to others. This awareness has led to increased claims against the liable people.

Product Liability Insurance
The product liability policy covers legal liability for injury to third parties or damage to their property caused by products sold, supplied, repaired , tested altered or serviced. This occurrence has to be unexpected and fortuitous that is, accidental. The policy can be given independently or as an extension of a public liability policy.

Professional Indemnity Insurance
Professionals or their employees can be negligent while acting in their professional capacity or in discharging their professional duty and may be liable to pay sums of money as damages. A professional is a person with skills in a given area of study. Examples include layers, doctors , surveyors, engineers, insurance brokers and architects. Professionals can be held liable for negligent acts of their employees arising out of and in the course of their employment. Professional liability arises when a professional fails to perform a duty for the client for example a lawyer can fail to file a suit in court on time or fail to register an opinion to purchase a firm.

An architect on the other hand can make a mistake in supervising a building and be liable to the principal in the event of the building collapsing.

The standard of care expected of a professional is the standard expected of the average member of that particular profession. The profession owes a duty of care to any person likely to be injured as a result of the professional’s error.

Workman’s Compensation Insurance
It is compulsory that employers in Kenya compensate employees who sustain bodily injury by accident or disease arising out of and in the course of their employment. The workman’s compensation Act does not compel employers to insure but to compensate. In the circumstance, employers have two options:

To retain the risk and pay from their resources the amount of compensation

To transfer the risk to an insurance firm. Most employees choose this option.

The workman’s compensation Act defines the workmen to be covered as any person whose earnings do not exceed Ks 400,000 per annum. ie. Ks 33,333 per month At the same time, the workman’s compensation Act provides for benefits and how compensation should be computed when claims arise.

Employers Liability (common law) Insurance
The workman’s compensation policy benefits are automatic. Employees need not prove negligence ; they only need to prove that they have sustained injuries or disease must arise out of and in the course of employment and must be directly related to negligence or breach of common law statutory duty by an employer. Therefore it is necessary for an employee claiming under this policy to engage a lawyer to pursue ones case in or out of the court. Any amount paid under the workman’s compensation policy is deducted from the employer’s liability policy.