Do you need business insurance?

We can all agree that the global pandemic [COVID19] caught us off guard, no one would have thought we would experience at this specific time. What other reason do you need to have insurance, emergency funds, savings, etc for your business?

In this blog, we will share WHY your business needs insurance and WHAT type of insurance do you need. As a business owner, you may be asking yourself, “Is business insurance really necessary?

According to Discovery Insure CEO Anton Ossip, businesses generally need cover for:

  1. Business assets, tangible or intangible.
  2. Theft (including theft by employees).
  3. Loss of profits or revenues.
  4. Legal liabilities, including liabilities arising from social media interactions.
  5. Losses to the business and liability to third parties following a cyber-attack on business computers (which we covered on our previous blog)

There is a variety of business insurance coverages available to business owners to choose from, you can tailor your insurance protection to address the specific risks facing your business. Some of the aspects of your operation that need protection include (but not limited to): 

  • The type of work you do
  • Your physical premises
  • Property and equipment
  • Intellectual property
  • Employees and customers

Bear in mind though, businesses in different industries need different business insurance coverages to help meet their unique needs.

What insurance does a small business need?

If there’s one policy you’re legally required to have as a small business, is employers’ liability insurance (EL).

EL covers your business in the event that one of your employees claims they’ve suffered an illness or injury as a result of working for you. It covers any legal and compensation costs involved in defending the case. If you don’t have EL, your business can be liable to pay a fine.

Does your tech need insurance?

Technology has definitely changed business insurance needs. Without a doubt, it can do wonders for your business…especially now more than ever, COVID 19 has enforced the revolution by going virtual to communicate with each other, including clients.

However, we did mention in our previous blog post that technology like computers and the internet can be vulnerable and/ or exposed to risks. If you don’t have insurance or security of some sort, your business may face a large financial and operational loss.

What you need to understand is that every business has its unique needs; which is why it’s important to consult with an insurance broker or financial adviser on the type of cover that’s right for your business. Some of which are:

How to buy business insurance that’s right for you in 4 easy steps:

  1. Assess your risks – think about what kind of accidents, natural disasters, or lawsuits could damage your business.
  2. Find a reputable licensed agent – commercial insurance agents can help you find policies that match your business needs. They sell company policies, so it’s important to find a licensed agent.
  3. Shop around – you should compare rates, terms, and benefits for insurance offers from several different agents, as they vary.
  4. Re-assess every year – as your business grows, so do your liabilities. If you have purchased or replaced equipment or expanded operations, you should contact your insurance agent to discuss changes in your business and how they affect your coverage.

If you want a starting point, check this comparison of Small Business Insurance Companies in South Africa: https://comparenreview.co.za/top-10-insurance-companies-south-africa/

You may assist us by adding what you know, we would love to hear from you!