Business insurance cover is a topic most people hardly address when discussing their future business plans. It’s understandable because there is no immediate danger when establishing your company. However, you need to plan and save up for those rainy days that might happen in the unpredictable future.

One of the reasons people avoid the topic of insurance is because the insurance industry is a highly competitive field. It requires you to take your time, do the research, and compare business insurance quotes and premium prices. As daunting as this is, it does help you figure out what your business needs are and how to protect those needs.

In this article, we’ll be discussing the brand of business insurance, what it covers, and how it serves you and your company.

What is Business Insurance?

Business insurance is a contractual arrangement that you undertake with a third party to safeguard your company and assets. It protects you in the event that something could go wrong because there are always some risks involved with every entrepreneurial endeavour.

Business insurance is the corporate version of an emergency fund. It provides the assurance that you will be covered on those rainy days or in those unexpected and uncontrollable life events.

What does Business Insurance in South Africa cover?

Business insurance premiums are flexible and customisable according to your needs. It typically covers natural and man-made risks and events that could occur and potentially damage your company, both physically and financially.

Here’s a list of some of the risk factors that business insurance covers and owners need to insure against:

• Property damage
• Theft
• Lawsuits
• Medical expenses
• Unemployment
• Bodily injury or disability
• Stock loss
• Equipment breakdowns

Types of Business Insurance in South Africa

The type of insurance premium that you choose greatly depends on the type of business you own, the size of your company, your daily operations, and most importantly, what you can and can’t afford to lose.

Here are 9 insurance cover premiums that all companies need to be familiar with.

1.   General Liability Insurance

General liability insurance covers the broad scope of daily operations. These liabilities could be compensation for an injury or disability at work, product or property damage, and claims of negligence. The premium compensates for any lawsuits, medical bills, and employee wages.

2.   Business Interruption Insurance

Some events are uncontrollable and unavoidable when running a business. These events include stock loss, theft, and property damage. This insurance premium helps compensate for the income loss incurred by these events. This premium covers rent and utility bills, stock/ equipment replacement, and employee wages.

3.   Professional Liability Insurance

Professional liability provides compensation for the business and operational errors that could occur within your company. This insurance covers you if your company endures a lawsuit due to negligence in your customer service, malpractice suits, clerical errors, and the like.

4.   Vehicle Insurance

Vehicle insurance is not only for the supply chain industries but also for anyone who uses their personal vehicles for their businesses. If you use your private vehicle to make deliveries to your customers, pick up products or materials, or even transport company employees. Then, you should consider taking out corporate vehicle insurance on your car.

5.   Product Liability Insurance

Product liability protects you from the possible lawsuits that might occur due to manufacturing, distributing, or selling a faulty product. This insurance covers you if the defective product causes illness, bodily injury, or damage to the property of your customers or employees.

6.   Commercial Property Insurance

Property insurance protects you in the event of property damage to your office building. The damage could be due to thunderstorms, fires, or crime. Your company is compensated for any loss you incur from these instances, such as inventory, furniture, equipment, and electronics.

7.   Cyber Risk or Data Breach Insurance

The recent surge in remote companies following the pandemic has led to greater importance in cyber security. Most cyber hackers have targeted small remote companies because of their lack of cyber security in place. Insuring your data not only protects your bottom line but your client information as well. It also preserves your relationship with your customers and their trust in your company.

8.   Home-based Business Insurance

Recently, more and more people have grown accustomed to starting their businesses at home. It could be a home studio, daycare centre, small tech company, or hair salon. Home-business insurance covers your professional needs, like equipment, property, and employee-related liabilities.

9.  Fidelity Insurance

Fidelity insurance is an uncomfortable topic for many, but there are always risks involved when working with employees. This premium protects your company from financial loss in the event of employee dishonesty. This dishonesty could occur as product or equipment theft, fraud or forgery, and the disappearance or destruction of company property.

Business Insurance Companies

Getting the right insurance premium for your company has plenty to do with the company you choose to provide this service to you. There are several offers that each company provides. It’s always important to do your research and compare insurance quotes. The insurance broker you choose has to be the best possible option to fit your needs.

Here are some of the country’s leading insurance companies so far:

• Auto & General
• Budget Insurance
• Discovery Insure
• Old Mutual Insure
• Outsurance
• Miway
• Momentum
• Santam
• Virseker
• FNB Business

Final Thoughts on Business Insurance Cover

When choosing a business insurance contract, the most important element is to assess the potential risks that your company could endure. These risks vary in terms of companies and industries.

Ideally, you could have every aspect of your business under a certain premium. However, that’s not always possible, more so when you’re a small business or still growing.

When taking out business insurance coverage, only cover what you cannot afford to lose. Whether it’s your building, equipment, cyber protection, or vehicles and machinery is up to your industry.

Once your essentials are covered, you can consider the add-ons that offer you maximum security from risks.