We all know that business insurance plays a major role in the starting up, growth and the sustenance of any business. Small to medium enterprises are fundamental to the creation of jobs in South Africa, playing an important role in the economic growth of the country. The problem is that because of their size they often face a large number of challenges that are associated with being an SME, as they are often vulnerable to eventualities and crises such as crime and fraud, fire and flood.
The expense that is associated with these disasters are often compounded by a lack of the correct insurance cover – that is why it is so important to ensure you have the correct business insurance cover and that you have enough of this. Although the most number of losses are experienced when a business is not insured, under-insuring your assets can also have a negative effect on the financial well-being of a business.
To overcome these issues – use an intermediary to assist. Setting up a business can prove to be a costly affair, it is therefore really important to get the right insurance cover to suit your specific needs. Intermediaries exist to back business owners to find the right type of insurance cover and to ensure there is enough cover should you need to claim.
In South Africa SME’s account for in the region of 91% of formal business entities, contributing more than 51% to the GDP and in doing so providing at least 60% of employment in this country. Because SME’s represent such a large number of business in the country, this sector should be growing and not be falling victim to crime.
The risks:
- These include crime, natural disasters such as fire and flood, fraud and general liability insurance.
- Following a simple risk management plan will help you protect your business from many eventualities.
- It is important to identify all potential risks to your business.
Get the right cover for your business – you won’t regret taking the correct steps from the beginning and taking out sufficient business insurance.
