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Small Business Insurance Checklist

Every year, businesses face unique challenges ranging from credit and market risks, technological disruptions to operational and regulatory risks, amongst others.

If you’re a business owner planning for the year ahead, don’t overlook the importance of reviewing your insurance policies and making sure that you’re adequately covered against insurable risks.

As a matter of precaution, all insurance policies should be reviewed or updated at least once a year.

Some factors to consider when checking that you’re adequately covered:

Protest Action 

South Africa has seen a steady increase in protest action, riots and strikes across the country.

It’s therefore essential to ensure that you have adequate special risks cover in place from the South African Special Risks Insurance Association (SASRIA).

SASRIA provides cover to both individuals and businesses against special risks like civil commotion, public disorder, strikes, riots and terrorism at very affordable premiums.

Cyber Risks

Cyber incidents continue to be a major risk area for businesses. Internal, banking and customer data are most at risk from fraudsters as we become increasingly dependent on technology. It’s therefore essential to have some form of cyber risk insurance cover and/or enhancement of data security protocols in place.

Regulatory Changes 

Every year there are a number of regulatory changes that impact businesses directly or indirectly, which may result in fines and penalties for non-compliance.

Natural Catastrophes 

The increase in severe and extreme weather conditions, coupled with intensifying natural catastrophes will continue to have a significant impact on businesses.

You should ensure they you’re adequately protected against these risks to avoid incurring severe financial losses. 

Business Changes 

Moving your business to a new location, purchasing new premises or venturing into new business activities, could all have a major impact on your business risk profile. So don’t forget to update your policies accordingly. 

Employee Exposure
Workers Compensation: This is an important coverage for employees that provides some help when employees are injured on the job. 
Fidelity Cover: If your employees are handling company funds either currency or financial instruments, you may want to purchase this cover to protect your company from any wrong doing.

Premises Exposure
Commercial Liability Cover: If your business is engaged in an industry where you’re exposed to larger liability risks, than just the most common slip and fall incident, you need to consider Commercial Liability Coverage. There are many types but these are some common policy types:
Professional Liability: This addresses exposures for professionals like accountants and lawyers and architects, etc.
Contractor Liability: This addresses exposures common in the contractor industry.

Directors & Officer Liability: Many business are protected with limited liability due to their structure but it’s important when you have a Board of Directors and Shareholders, to protect them from those who would question their decisions.

Price-Check Your Short-Term Insurance 

One simple, yet often forgotten, method for cutting costs is to re-examine your short-term insurance cover and costs each year. This means comparing quotes from different providers, as well as checking that your motor vehicles, equipment and buildings are still insured for the right amounts.

While it’s important to make certain that you are not under-insured, it’s equally important to check that you’re not over-insured. If you insure your bakkie for R100 000 and it’s only worth R80 000, remember that you won’t be paid out the extra R20 000 even though you’ve been paying higher premiums.

New and Enhanced Products 

Inurers are always tweaking and improving their existing products so always ask your broker to advise you on any new products that might add value to your existing insurance portfolio.

If you’re unsure about how well your current policies are protecting your business, feel free to schedule a chat with Misha on 044 382 0550.

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