The South African commercial sector is traditionally underinsured and this gets worse during tough economic times. Underinsurance can be very damaging, especially in the case of a serious incident where business is interrupted, or where major repairs or even the rebuilding of a property is required.
Making sure that your business is adequately insured is essential to protect your business assets and finances.
Some important components of business insurance cover to consider include:
Liability insurance- all businesses, including home-based businesses, need liability cover which offers protection in cases where you, your employees or your products or services cause, or are alleged to have caused, injury or damage to a third party.
Property insurance - if you own your building or even just the office equipment, your policy should protect against perils such as fire and floods as well as other risks such as theft and vandalism. It is important to make sure that the building and its contents are insured for their replacement value.
Commercial vehicle insurance - you can insure your business vehicles against damage, theft, hijacking and collisions. Vehicles should be insured at market replacement value.
Business interruption/loss of revenue insurance - insurance protection of your revenue if your business is unable to operate.
Network business interruption insurance - covers the loss of income and operating expenses when your company's business operations are interrupted or suspended due to a network security failure.
Cybercrime insurance - insurance protection for the threat of intentional security attacks against a company by an outsider attempting to extort money, securities or other valuables. There is an increasing demand for cybercrime insurance in South Africa.
It is important to understand the risks associated with your specific business and to find a risk management solution which meets your specific insurance requirements. The cheapest premium offered is not always the best option, so you should compare the cover, exclusions, excess and all the terms and conditions before deciding on an insurance provider.