Like our homes, lives, and health, our businesses require insurance in the same way that we do. Business insurance protects your company from various risks, including vandalism, fire, and natural disasters. We will discuss all of these in this article.

So, if you want to learn more about business insurance in South Africa, keep reading.

Types of Business Insurance in South Africa

There are many types because businesses vary in size, employees, and operations, thus needing different covers. It is not as simple as car insurance, but after reading this piece, you will understand better. It is advisable to partner with a recognised registered, fully qualified, and trained insurance professional like Phoenix Insure to navigate the various options available to your business.   

Here they are, along with definitions:

Property Asset Insurance

Insurance offered would include weather-related events following a storm, wind, flooding, hail; water; fire; explosion and events related to theft; vandalism, accidental damage and political riots, to mention a few. 

This type of insurance can be categorised between movable and immovable property.

Moveable items would include owned or leased assets like motor vehicles, plant, machinery, special vehicles, electronic equipment, cell phones, laptops, office equipment, stock, generators, tools, and any other equipment; the list is endless.

Immovable property would include any permanent building structure, such as a factory, storage facility; carports; fences, and any permanently fitted and or fixed items like a geyser, boilers, generators, wind turbines, water tanks, solar panels etc.

Business Interruption Insurance

Suppose a catastrophe like a fire, storm or explosion interrupt’s the normal operation of your business. This type of insurance will assist you in recovering from the reduction in turnover.  Phoenix Insure will assist you in gathering the information from your annual income and gross profit figures. Your advisor will guide you to insure your business for the correct amount of months of potential business interruption, considering how long it will take your business to return to normal income after a catastrophe.

The cover can be extended to include losses resulting from a significant theft, which can impact a business not able to deliver adequate stock to clients, thus reducing income.

Personal Accident / Illness Insurance

A business policy can be expanded to include insurance for their employees for any accidental injury, temporary disablement, and death whilst in your employ.  Cover can be limited to working hours or extended to 24 hours.  Further extended covers are burns, disfigurement and illness.   This type of cover is often seen as a fringe benefit to your employee.   

We will address employers and third-party motor liability to your employees under the liability insurance section below.

Public and General Liability Insurance

This form of insurance provides cover to the business for events they may be held liable for and could result in a lawsuit.  It includes damage to third party property, injury and or death to/of third-party people. 

Types of liability covers are broad and listed below some of the more regularly selected types:

• Property Owners Liability (building owner)
• Tenants Liability 
• General liability (shop owners; general offices; malls; factories, manufacturers etc.)
• Products Liability (manufacturing, installer; dispensing of products etc. any handling of a product)
• Defective Workmanship (repairer; installer; modifying a product)
• Motor Vehicle Liability (this type of liability cover is included in your motor vehicle insurance)
• Employers Liability (injury or death to/of employees due to the negligence of the business owner)
• Professional Indemnity (any professional who offers advice to a third party requires this insurance; it is also known as errors and omissions insurance. Examples are lawyers, financial advisors, medical practitioners etc.)

Motor Vehicle Insurance

Any type of motorised vehicle can enjoy cover under this type of insurance, including motor fleets, modified and or special types of vehicles used in the agricultural, farming, building, and manufacturing industries.  

Niche and Specialised

• Directors and Officers Insurance 

This insurance policy applies to senior management and directors. Any failure to fulfil their fiduciary responsibilities could result in litigation against them in their personal capacity. The policy will be in the name of the business, but the insured parties of this type of cover are, in fact, the officers and directors in their personal capacity.

• Data breach Insurance (Cyber Risk Liability)

Almost every company has recorded that they want to keep their data secure from unauthorised third-party attacks. These include the sensitive information of clients, employees, contractors, service providers and the like. If any information is leaked to a third party, the company will be protected from potential loss.

• Medical Malpractice Insurance 

Like Professional Indemnity insurance but expanded to cater specifically to the medical fraternity. 

• Marine and In-Transit Risk Insurance

Goods are transported by road, rail, sea, and air around the globe. This type of insurance will offer solutions from point to point and extend to insure the vessel, the goods, advanced loss of profits and or fines and penalties for specific events.

• Agricultural Crop Insurance 

Insurance related to the agricultural industry, like all other industries, has advanced, and you can insure a wine farm operation from the vine to the bottle. Crop insurance will allow specialists to determine the actual yield on a certain crop type and offer solutions accordingly.   

• Aviation Insurance 

An end-to-end insurance product insuring the aircraft and liability risks associated with passengers and third-party property damage.

Why is business insurance important?

It allows you, the business owner, to be put back into the same position before a catastrophe.

Business owners want to focus on growing their business and do not want to be concerned about the financial implications of a catastrophe or when a legal claim is made against the company. The insurance solutions listed are not exhaustive; there are too many options available, but with the correct guidance and support from a qualified insurance professional, like Phoenix Insure, a suitable and well-priced option will make all the difference.

It will save you time and money

By selecting the correct cover, it will allow the business owner to continue the business. It will enable the insurance advisor to handle all insurance-related affairs directly with the insurance company on their behalf.

It protects the company from financial loss

Suppose a fire, theft, vandalism, natural disaster, or your company’s assets are damaged or stolen. In that case, the various types of insurance solutions will automatically respond and address the losses assisting you to get back on your feet.

It safeguards your employees

Besides opting to offer your employees fringe benefit type of cover, when your business enjoys more comprehensive cover, this indirectly secures your employees’ jobs as the correct insurance policy will provide protection from financial ruin. This should be your goal as a business owner.

Bottom line

Business insurance is essential for all businesses, regardless of size or type. Nonetheless, the selection of a professionally qualified insurance advisor, like Phoenix Insure, and partnering with a blue-chip insurance company combined with a tailor-made suitable well-priced policy for your specific business will ensure you can rest assured. So, as you choose one, keep an eye out for the best.

Disclaimer:

This blog does not constitute financial advice. The content is intended to provide information for educational purposes. We recommend that interested parties contact Phoenix at the contact details listed or their financial advisors for a comprehensive review and needs analysis followed by the required record of advice.