Article by King Price Insurance
If the past two years have shown South African companies anything, it’s that no business can afford to be without insurance. Whether you’re a growing SMME or still starting up out of your garage, insurance is critical to protect your business against everyday risks.
The world has never been more uncertain and unpredictable. Insurance doesn’t just ensure continuation of the business and cover any financial losses, it also provides credibility to your business, showing your clients and employees that you’re trustworthy and will be able to offer compensation if anything goes wrong.
However, it’s important to know what types of business insurance are available, and what each one covers. Some examples of insurance include:
- General business insurance covers risks on your business premises, like vehicles, buildings, contents, electronic equipment, stock, and machinery. Risks like accidental damage and theft can also be covered. Items leaving the premises can be covered under business all risks.
- Fidelity insurance covers dishonest and unlawful actions by employees, while public liability insurance covers damages that businesses are liable for arising from any accidental death, injury or loss which occur in connection with their business, and employer’s liability covers damages you are liable for because of any accidental death, injury or loss sustained by your employees.
- An increasingly important insurance type is cybersure, which covers businesses against financial loss, disruption and reputational damage that result from cyberattacks. It covers all software and data, and protects businesses against liability arising from third-party attacks on their IT infrastructure.
- Engineering insurance covers contract works, works damage, and plant all risks, while advanced loss of profits covers the gross profit lost due to an insured incident.
- Machinery breakdown provides cover for unforeseen and sudden damage to machinery. Financial losses associated with breakdowns and cover for deterioration of stock can also be included.
This year’s unrest and looting highlighted the importance of having Sasria cover. Sasria is the only short-term insurer that provides cover against extraordinary risks such as civil commotion, public disorder, strike, riot and terrorism, none of which are not covered by ordinary insurers. Sasria cover can usually be bought through an insurer as part of a business insurance policy, but it can also be procured directly from Sasria.