Article provided by King Price Insurance
Running a small to mid-sized business in South Africa today is fraught with challenges. For many SMEs, a setback could spell disaster and the loss of your livelihood. But, while it’s impossible to prevent incidents, well-prepared businesses can manage their risks through a comprehensive business insurance portfolio that mitigates the damages and after-effects.
From an insurance point of view, there are seven main areas of risk to consider – and cover. The first three – business interruption, buildings insurance and public liability – will protect your business income in case of an unplanned interruption to your day-to-day operations, protect your buildings from various risks that could leave your business without a roof over its head, and also ensure that you won’t be crippled by costs that you’re legally liable to pay to third parties.
Protect your people
Workplace injury or illness is far more common than many small businesses may think. Employer’s liability cover is vital to protect both your employees and your business itself in the case of workplace accidents.
Lock up your data
Small businesses lose millions of Rands every year through cyberattacks, and a good cyber insurance policy covers your business against financial loss, disruption and reputational damage that result from cyberattacks. Cybersure covers your software and data, and it protects you against liability arising from the misuse of, and third party attacks on, your IT infrastructure. Cybersure cover also covers data breach expenses, extra costs and loss of income, as a result of insured incidents.
Keep the wheels turning
If your business owns and uses vehicles in its operations, you can’t afford any downtime or losses through collisions, theft or damage. It’s also important for SMEs to be covered against eventualities like unlawful ‘borrowing’ of vehicles and third-party damages in case of accidents.
The inside job
Financial loss through fraud or dishonesty by an employee can close your business. The best way to manage this risk is through proper controls – but in case this isn’t enough, fidelity cover insures you against fraud, dishonesty and the theft of money or other property by an employee.
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