Always expect the unexpected and plan for it
Looting and destruction seen in KwaZulu Natal and Gauteng this month has left many businesses destroyed or severely damaged, some beyond the recovery point.
Some large companies may have purchased special risk insurance from the South African Special Risks Insurance Association (Sasria), the only state-owned non-life insurance company that offers voluntary coverage against unique risks, including civil unrest, public unrest, strikes and riots.
And while Sasria predicts that the payments they will need to make over the next few months will be the highest in its 42-year history, they are committed to ensuring that all legitimate claims from businesses and homeowners will be met.
The question is, how many companies affected by the recent protest action have insurance coverage, especially Sasria coverage? The bottom line is that many affected businesses do not have insurance coverage and will not be able to recover from the damage and loss incurred.
The Insurance Association of South Africa (SAIA), the representative body of the non-life insurance industry, including Sasria, has urged all policyholders, including large and large small businesses, which have suffered loss or damage to property and / or business operations, to seek assistance from their respective insurance companies or brokers and their registered financial intermediaries or planners.
As this devastating situation comes to an end and insurers and the wider business fraternity work together to get things back on track as quickly as possible, it has also highlighted the importance of insurance for small businesses.
Working for yourself has many advantages as well as many risks. While some might view business insurance as an additional expense, insurance should instead be viewed as an upfront expense to any business.
Many business owners work so hard to start a business, and having the right insurance coverage for small businesses is important in protecting your business in the event of an unfortunate event.
Before the current outbreak of violence and unrest, the Covid-19 pandemic and the lockdown that followed meant small businesses were hit very hard. Many business owners may have thought that a global pandemic or provincial riots of this magnitude could be just a one-time event, the reality is that an emergency or disaster can strike at any time. .
There are many options to consider when finding the right commercial insurance, depending on the type of coverage you need and the size of your business. Getting the right coverage is essential to make sure you’re not under or over-covered, and that you have peace of mind if your business is affected by theft, fire, flood, storm, or accidents. Small businesses can also purchase insurance against lawsuits, business interruption and damage to reputation.
While the options can seem overwhelming, talking to a planner or licensed financial advisor can help you assess the type of insurance your business might need. Always remember to read the fine print when signing an insurance policy and make sure you know what you are and what you are not covered, including riot damage and theft. public.
If the past 18 months have taught us anything, it’s to expect and predict the unexpected.