Being your own boss has its perks, but for your business to thrive as it should, you need to protect it. Having the right small business insurance in South Africa can contribute to the success of your business, by providing protection should an unfortunate event occur.
NSBC founder and CEO Mike Anderson, in an interview with IOL, said that the COVID-19 pandemic may seem like a once-in-a-lifetime event, but the reality is that an emergency could come along to disrupt any small businesses at any time.
Business insurance in South Africa is especially important for small businesses as they cannot afford to take a major hit. SME South Africa explains that insurance covers protects you and your business against unforeseen events, including, but not limited to, the following:
- Financial loss: cover against any financial loss the business may encounter.
- Legal action: cover against risk of customers and/or suppliers taking legal action against you. Legal business cover can help with handling any legal battles that may occur.
- Survival of the business: in the event that a catastrophic event occurs, such as theft or fire damage, business insurance policy cover will cover the damages.
- Business interruption: for when an unexpected event, such as Covid-19 lockdown, brings your business to a halt.
- Reputational damage: covers the business in the events of damage to the company’s image or reputation. This includes any reputational damage as a result of social media, a website hack, or data breach, etc.
What are two insurance types for businesses?
Property Insurance: The most obvious reason to purchase small business insurance is to protect your building. Public Liability cover: No matter how careful you are, you may find yourself in a variety of situations that could result in a third-party claim against your business, so it’s a good idea to be prepared—just in case!
Business Vehicle/ Fleet Insurance: Just like your personal car, your business vehicles, like your delivery truck, need to be protected. Business vehicle cover is available for accidental damage, theft, hijackings, third-party liability, damage to glass – to name but a few options!
Business Insurance Benefits
- Protects the business income – in the event of an accident can protect a business against potential financial loss.
- Save money – you don’t have to worry about a potential unforeseen expense.
- Business continuity – helps minimise downtime caused by disruptive events.
- Avoid potential lawsuits and settlements – help avoid lengthy and costly suits.