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Starting a small business in the South African market can be an experience that’s equal parts exciting and daunting. And while SA houses a thriving SME sector, it’s not free from risk – namely, theft, loadshedding, climbing inflation costs, extreme weather conditions, liability claims, and unforeseen events that cause harm.
Here’s why it’s important to invest in safeguarding and protecting your business against risks comprehensively with business insurance.
6 reasons to consider business insurance for your SME
Some of the risks to be aware of that can be covered and protected by the cushion of business insurance include:
1. Damage to Your Business Property – Your warehouse or office, your building equipment, and stock, are vulnerable to damage from theft, fire, floods, and other unforeseen events or disasters. You need to mitigate this risk.
2. Business Operations are Interrupted –Unexpected events like fires, even loadshedding changes, and natural disasters can interrupt your business operations. This leads to lost income and an inability to pay your expenses. Did you know you get insurance for that?
3. Third-Party Claims – Liability claims taken against your business for damage, injury, or negligence to a third party can be costly, both financially and reputationally.
4. Cyber Attacks – With cyber-attacks on the rise in SA, this can result in your business being at risk of data breaches, financial loss, and reputational damage. Your anti-virus is not equipped to deal with this level of cybercrime.
5. Your Employees are Exposed – Your SME employees are exposed to risks like work-related injuries, illnesses, and accidents that could lead to liability claims.
6. You Face Legal Action or Fines – Your business is also subject to various laws and regulations that could result in legal disputes or regulatory fines if not followed timeously. There is business insurance for SMEs that can protect you from these risks.
All the above risks can be avoided and prevented if you invest in a reliable comprehensive business insurance plan. Insurance offers SME business owners confidence and peace of mind to make business decisions that help them grow while feeling secure in the knowledge that their assets and staff are covered against the risks.
Find your insurance type
Finding an insurance package that works for your business is a lot like finding a partner to start a relationship with – you need to shop around and ask the important questions – what the insurer can offer you, what you’d like to cover, what your budget is, and knowing your business niche and needs.
However, there are some known business insurance ‘types’ to help you decide which may best fit your business and growth needs, namely:
1. Property Insurance – This type of insurance safeguards your business property against damage or loss caused by specific perils such as fires, storms, theft, or accidents.
2. Business Interruption Insurance – This type covers potential losses of income and increased expenses when your business operations get interrupted.
3. Liability Insurance – This type of insurance protects your business against third-party claims for damage, injury, or negligence – in cases where you are found to be legally liable.
4. Cyber Insurance – This type covers losses that occur due to cyber-attacks, including data breaches and business interruption.
5. Employee Insurance – This insurance type helps to protect and cover your staff through work-related injuries, illnesses, and accidents, as well as employment practices liability claims.
6. Professional Indemnity Insurance – This type covers liability claims related to professional advice or services.
To help get you on the right track, Santam, one of the leading insurer brands in SA, is offering comprehensive and reliable business insurance coverage to help get you started on safeguarding your SME business and growth objectives.
Some of the things they promise to deliver for their business clients include expertise and experience, comprehensive coverage, tailored solutions, risk management support, competitive pricing and value-added services.
For more information on Santam’s variety of business insurance for SMEs in South Africa – visit their website and get in touch with one of their insurers to find out which package, or customisable option, will work for your business.
This post was sponsored by Santam Insurance and produced by Adspace Studio.
