The ABC of Business Insurance

This article was posted on 03 June 2016

Posted in Business Insurance


Business 1

There is no business that doesn’t involve taking a risk. If you run a small business or a large corporate organization, you face risks. The type of risks and the extent of loss will vary. The key is to identify the risks that your business is exposed to and then find a solution in insurance to protect your business from such losses.

The most common risks that every business face is fire, burglary or a natural disaster. As mentioned the extent of the loss will be small in case of small businesses and might be huge in case of a large corporate organization. There can be risks that are specific to the type of business that you are in. If you are into export of goods, you need marine insurance. If you run a factory in South Africa, you need machinery breakdown insurance.

If you are running your business from your home itself, you should insure them separately under business insurance not under home insurance. The reason for this is because the equipment you use for the business might be more expensive than your household equipment and the fact that you might have large amounts of money at your house - this will not be covered under your home insurance.

If your business involves people visiting your place, say for instance your office or your restaurant, it will be ideal to have public liability insurance. This covers the legal liability that you will have to face if any property damage or bodily injury occurs to a third party on your premises, while availing your service.

As an employer you have various insurance products to help you in managing the risks. An employer has a liability towards any accidental injury or death while carrying out the job. This can be covered by taking a Worker’s Compensation Insurance.

Keyman Insurance is an important life insurance product used by businesses in South Africa. A keyman is defined as a person who is key to the successful running of the company. He may be a major contributor to the success and profitability of the company. The business may be affected badly in case of his death or disability. The company might find it difficult to recover from the loss in the short run. A company can take life insurance or disability insurance in the name of its key persons, to ensure that they will not be affected by the loss of that person. The insurance proceeds can be used by the company to meet its immediate expenses as well as replace the deceased employee with a new person.

Another common insurance policy in South Africa that falls under business insurance is the employee benefits insurances like Health, Accident and Life Insurance for the employees. Businesses offer such coverage to their employees as an additional benefit for working with the company and as an employee retention tool.

Many small businesses in South Africa feel that insuring their business is not affordable. But, the fact is that you cannot be prepared for unforeseen events like a fire or a natural disaster without having insurance. There have been instances where such events forced people to close down their businesses.

Insurers offers Business Insurance as packages with options to tailor make the coverage. By opting for Business Package Insurance, the insurer also offers discounts on premiums considering the business as a bulk business.

There are various plans and options available under Business Insurance. We at Mister Compare help you choose the right Business Insurance Solution for your business in South Africa, from a variety of available options. We also assist you in comparing and purchasing other insurance products such as Car Insurance, Health Cover, Life Insurance, Legal Covers and Hospital Cover in South Africa. Remember, More Options leads to Better Decisions.


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