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Top Business Insurance Companies for Small Businesses | SMESA

Top Business Insurance Companies for Small Businesses

Updated on May 20, 2024

AIG Business Insurance - Best for medium-sized businesses

    Property damage

    Business interruption

    Electronic equipment

    Motor insurance

    Business all risk

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Budget Business Insurance - Best for small businesses

    Motor insurance

    Fire insurance

    Business interruption

    Office content

    Theft cover

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First for Women Small Business Insurance - Best for multi-line cover

    Business premises

    Loss of income

    Public liability

    Business vehicle

    Business assist

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MiWay Business Insurance - Best for Business Assist

    Motor insurance

    Business property

    Business interruption

    Business assist

    All risk insurance

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Introduction

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.  Additionally, Public Liability cover ensures expenses arising from third party injuries or their property being damaged, 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, it can protect your 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 with avoiding lengthy and costly suits. 

Main Features

Here are 5 main business insurance features every business owner should be aware of:

  • Property cover – Protects your businesses premises and any property including equipment, furniture, tools and inventory. 
  • Commercial vehicle cover – Protection of any registered business vehicles in the event of damage or theft. 
  • Business Interruption cover – In the event of loss of income as a result of a disaster
  • Business liability insurance –  Protects the financial interests of companies and business owners in the event that they face lawsuits or any third-party claims. 
  • Employers’ liability insurance – Covers a business owner against any injury, illness or death caused to an employee during their work. 

Pricing

The price of business insurance will depend on the type of cover that you choose for your business and your risk profile. Here are four factors that affect the price:

  • Type of business – Businesses in certain industries (for example construction, mining and medical) are considered high risk and this will result in higher premiums.  
  • Business size and the number of employees – This affects your need for specific cover such as Workers’ Compensation, General Liability, Professional Liability
  • Location – The safety of your location will have an impact on your risk profile and in return your premiums 
  • Claim history – Previous claims will affect your risk profile and therefore your premium amount. 

Buyer's Guide

Business insurance can be overwhelming, especially if you don’t know where to start. When looking for business insurance here are a few points to consider:

Industry-Specific Cover 

According to Business Insurance it is advisable that you choose insurance cover that is specific to the industry that you operate in. 

Here are some examples of industry-specific cover:

  • Industrial Insurance – Covers glass facilities, racking and shelving companies, automotive industries and factories.
  • Mining Insurance – Covers gold mines, platinum mines and coal mines.
  • Retail Insurance – Covers hairdressers, beauty salons, coffee shops, restaurants and florists.
  • Handyman Insurance – Covers plumbers, electricians, builders, carpenters, mechanics and security installers.
  • Transport Insurance – Covers trucks, buses, aircraft’s, motorbikes, deliveries and couriers.
  • Corporate/General business – Covers office buildings, equipment, vehicles, employees, business risk, liability cover, fires, storm and loss of earnings.  

Business Risk 

The cost of business insurance coverage may vary depending on risk. The overall cost of your cover will depend on many factors such as risk, location or claim history. 

How much business coverage is needed 

When looking for business insurance it is easy for businesses to make the mistake of considering the price over the business coverage. Business insurance has many benefits for the business and it is always better to ensure that you have everything covered. Inexpensive cover can sometimes leave out the most common risk factors. When choosing a business insurance cover, consider every aspect of your business and choose the insurance coverage that will protect every aspect of your business. 

 

Compare our best picks

AIG Business Insurance

Pros

Wide range of coverage

Global presence

Financial strength

Cons

Complexity

AIG’s insurance policies may be more expensive than those offered by some smaller insurers

AIG is a reputable insurance company that offers a wide range of business insurance products. However, their policies may be more expensive than those offered by some other insurers.

Budget Business Insurance

Pros

Affordability

Variety of Coverage

Cons

They do not offer multi-line insurance for small businesses.

Reliance on Agent Quotes

Budget Insurance appears to be a good option for small businesses looking for affordable business insurance with a variety of coverage options.

First for Women Small Business Insurance

Pros

Tailored coverage

Focus on women-owned businesses

Support for women

Cons

Limited geographical availability

Lack of online quotes

First for Women Small Business Insurance could be a good option for female entrepreneurs in South Africa, particularly if they have a shop, salon, or professional service business.

MiWay Business Insurance

Pros

Competitive rates

Wide range of coverage

Cons

Limited availability

MiWay Business Insurance may be a good option for businesses in South Africa looking for a variety of coverage options and competitive rates.

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