The Most Important Types of Business Insurance in South Africa
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The title of this article is a little hyperbolic. At the end of the day, the most important insurance type to you and your business depends entirely upon your individual commercial needs. That said, the business insurance types covered in this post, are important more often than not and should, at the very least, be on the short list of priorities for the prospective business insurance buyer in South Africa. Remember to always consider your particular context, before selecting insurance types. But also keep in mind that certain needs will be made more common simply by virtue of the environment in which you operate.
With all that being said, and without further ado, lets look at some of the most important insurance types for the South African business.
Travel needs are not uncommon among South African commercial interests. Whether you regularly send staff to meet partners and stakeholders in Cape Town or Johannesburg, or your interests take them farther afield and you engage partners in North America or Europe, you need to ensure that you are covered for the unseen eventualities that could take place in these distant locations.
Theft is unfortunately common in South Africa, and the culprits are many and varied. When insuring your assets against theft, remember that thieves can be both external and in-house threats. You may not want to entertain the possibility that someone you hired could steal from you – especially if you have a small business whose staff feels like family – but you have to face these things head-on and get the protection you (and the rest of your staff) need, in case your worst assumptions become reality.
Protect your business’s bottom line and its material goods, against the possibility of theft – no matter who the culprit might be.
The physical property that comprises your business has to be protected – whether against accidents or natural causes. Make sure your business – from signage to equipment – is comprehensively covered, including against storms, fire, flooding and theft. The unforeseen replacement of equipment can be crippling – especially to the SME, whose narrower margins leave less room for error.
If your business maintains a fleet of cars – however big or small that fleet is – it is imperative that those vehicles are insured, lest they be damaged or incapacitated, leaving you immobile and without appropriate recourse for the deliveries or manpower transportation that may well be the lifeblood of your commercial interests. Much like property insurance, vehicle cover ensures that you are not blindsided by sudden and unexpected expenses.
Business interruption cover
If and when disaster does strike, it is not always the replacement costs of equipment, property or vehicles that can most readily cripple a business. Sometimes, the greatest danger is the duration during which operations must cease, while repairs are enacted or replacement equipment is sourced. If your business is not operating, it is not making money. If that situation is allowed to go on for too long, then your business may never be able to realistically recover from disaster.
Business interruption cover, protects your commercial income during a period of downtime due to events for which you have claimed. This sort of cover is regularly considered to be the most important among business owners, and it can be the difference between your business’ success or failure in the wake of disaster.