All You Need To Know About Business Insurance in South Africa

All You Need To Know About Business Insurance in South Africa

Business insurance companies have been around for nearly a century, it was founded after the stock market crash when so many businesses crumbled not just because the market went south, but also because they were left vulnerable without proper business insurance. The business insurance entered a market that was ripe and ready for the product and this is why they have remained market leaders in the field of business insurance.

Business insurance will provide cover for any eventuality that a business owner could think of, this is because as the needs of customers have evolved over the years so the business insurance has allowed their cover to change as well so that today they really do provide the most comprehensive insurance cover for businesses in South Africa.

What insurance is most important for a business?

Accidents, injuries, and negligence claims are covered by general liability insurance. These policies cover bodily injury, property damage, medical expenses, libel, slander, lawsuit defence costs, and settlement bonds or judgments required during an appeal procedure.

What can business insurance do to help a business?

These businesses need insurance to protect them from risks that could result in large financial losses that they cannot recover from. Businesses can focus on growth knowing they are protected by their insurer.

Business Insurance Is Mandatory

Most states mandate SME insurance. Even if yours doesn’t, it’s not a waste of money. Without it, your company may lose money if:

  • A customer sues you after being injured on your premises.
  • A fire destroys your property.
  • A computer containing client data is stolen.

Many people make the error of assuming that business insurance cover is just there to cover accidents in the workplace, for example, if someone gets hurt on the factory floor. While this is a big part of business insurance it really is only the tip of the proverbial insurance iceberg.

The people at business insurance companies will provide cover for not only accidents in the workplace but for other mishaps as well.

They will cover your business in the event of a customer getting hurt, not just on your premises but also in the event of the customer getting hurt because of your product, well after they have left your premises, for example, if someone buys a car from you and the brakes fail 2 weeks later and they end up badly hurt, the Business Insurance Company, will be your guardian angel. They will handle the entire affair from legal costs to the settlement at the end and all that you have to do is make sure that your payments are kept up to date.

The Business Insurance Company will also provide cover in the event of one of your staff injuring someone, while they are on duty, for example, if your driver crashes into someone while working, the Business Insurance Company will take care of the entire matter, with as little fuss as possible.

Looking for the right business insurance policy for your company can be quite an intimidating undertaking. There are many different reputable insurance providers and attractive business insurance policies to choose from. Deciding which one is the best choice for your business can be an immense challenge.

It is important to note that this wide variety of options available does work out to be in your favour. The intense competition in the industry means that you, the client, are a lot more likely to get more value for your money.

Before you begin shopping around for business insurance, you should have a basic understanding of the different varieties of business insurance available.

A Quick Summary Of The Main Varieties Of Business Insurance

Property And Casualty Insurance

Business owners who wish to be financially protected if any damage should come to any business property as a result of unexpected circumstances should look for business property and casualty insurance. The ‘unexpected circumstances’ covered by the insurance policy will differ from one company to the next and may include events such as fires, floods and hurricanes.

Liability Insurance

This type of business insurance policy will be different for every business. This is because each business and industry is unique with regard to the possible dangers that exist in the work environment.

Comprehensive Cover

Many businesses will require numerous different insurance policies if they wish to have comprehensive business insurance. Many insurance providers often offer packages that include different types of business insurance to ensure that all risk is managed well. Clients who choose comprehensive corporate business insurance packages benefit from the convenience and often excellent value for their money.

Employee Benefit/ Compensation/ Health Insurance Cover

This type of business insurance is particularly important. It ensures that all employees will be covered in the event of disability, death or injury. Medical insurance, credit insurance and funeral cover are also generally included.

Interruption Cover

If anything should happen that interrupts your company’s cash flow then this type of business insurance will be extremely beneficial. Interruption insurance will make sure that your business is compensated for any ‘downtime’ during which it was unable to operate due to unforeseen circumstances such as a flood or robbery for example.

How To Make a Business Insurance Claim

In the event that you must make a business insurance claim it is important that you understand how to go about filing an insurance claim. It doesn’t matter what type of claim you will be making the general rules remain the same.

The following steps will explain exactly how to file a business insurance claim.

  • Step 1. Whether your business was broken into or you sustained damage due to a natural disaster you must make a claim as soon as physically possible. But first in the event that a crime has been committed, you must phone your local police department. You must also get copies of the police paperwork regarding your business in addition the police will provide you with a case number don’t lose your case number the insurance company may require it.
  • Step 2. Phone your insurance service provider to get the claim process started.
  • Step 3. Document the damage sustained by means of photography take as many photos of any damaged areas or equipment as possible.
  • Step 4. In the event of there being a witness to what had taken place on the scene of the crime or how the damage had occurred be sure to get a detailed statement from the witness so you can send it to the insurance company.
  • Step 5. List any losses that your business may have suffered either content-wise or structural you may also estimate the number of operational business hours you will lose while your business is closed.
  • Step 6. Review you current business insurance policy to make sure that the claim you are making will be well within your policy’s limits.
  • Step 7. Make sure you have all relevant business records readily available. Should the insurance company require proof of certain equipment value? Your company will have financial records stating the worth of the equipment.
  • Step 8. Any repairs and maintenance work that may be needed must always be done by a qualified contractor that has been pre-approved by your insurance service provider.

Following the above-mentioned steps, you will not only be ready to make a business insurance claim you will be sufficient in doing so.