Small businesses are not immune to peril, in fact the smaller the business, the more
difficult it is to recover from a catastrophe. Small business insurance caters for those risks unique to smaller businesses, such as damage to buildings or property, theft or damage of business equipment and claims by third parties, while keeping premiums affordable.
Given their size, small businesses are concerned about paying high premiums, which makes comparing small business insurance quotes all the more important. Before you do that, though, consider what type of cover your small business requires. Small business property insurance
While South African law does not mandate small businesses to take out insurance on their buildings, it would be unwise not to. To lose your company’s premises as a result of fire, earthquake, flood or other natural disaster could bankrupt your business. To protect from these and other insurable perils, a small business buildings insurance policy is required. It also covers accidental damage to the building (not resulting from improper maintenance), such as burst geysers, electrical faults, poor paved areas etc.
As many small businesses operate out of home, your insurer may require your home insurance to be changed to business buildings insurance for the increased risk of employees and clients. NOTE: If you are renting office space, your landlord is obligated to take out buildings insurance, not you. Small business contents insurance
Even if you do not own the building in which your small business operates, you will need contents insurance to protect all your office equipment and stock. If the building is damaged as a result of a catastrophe, a contents insurance policy will protect the movable items inside the building. If you operate from a home, your business contents must be insured under a business insurance policy (to cater for the increased risk), and not a home contents insurance policy. Your insurer can reject claims on a home insurance policy for business equipment on the grounds of non-disclosure.
NOTE: For those items, such as laptops, cameras and other mobile business equipment, an All Risks business insurance policy is required. This covers those items for theft and damage while in transit and offsite. Small business product liability insurance
If your small business is in the business of manufacturing goods or selling them, then product liability insurance is important. It protects you third-party claims for faulty products. That is, if someone is injured using your product, they can sue you. Product liability covers this risk.
Small business liability insurance
Alternatively, if your small business provides a service, third party liability business liability insurance may cover you for claims made by third parties for poor workmanship, otherwise it will protect you from claims made by third parties who were injured on your premises.
If your small business has hired employees, then employer liability insurance will protect you from employee claims, such as sexual harassment and discrimination. (It will not, however, protect you from claims of unlawful dismissal.)
Speak to your insurer for other small business insurance policies that will cater for unique risks associated with your particular industry. |
