Is there cover if the Insured’s liability arises out of the Insured committing a criminal act?

  • The policy does not specifically exclude liability arising out criminal action.
  • However, there is no cover where the Insured intentionally commits any criminal act, or even fails to take reasonable precautions to prevent the claim.
  • It is nonetheless possible to commit a criminal act despite reasonable precautions.
    • Example: The Insured is held criminally liable in terms of the Occupational Health and Safety Act when during the foreman’s toilet break a worker discards his protective clothing and as severely injured.
    • The legal costs incurred in defending the criminal charges would be covered under the Statutory Defence Costs extension. There would be no cover for the fines should the Insured lose the case.
General Liability