5 Key Facts You Should Know About Insuring Your Business

Insuring your business can sometimes feel like an exercise in frustration or complexity, especially for a small business owner. You have more important things to focus on, after all. But the truth is that good business insurance, also sometimes referred to as commercial insurance, doesn’t have to be complicated or obscure. And with the right advice and guidance, you’ll enjoy absolute peace of mind in the knowledge that all your bases are literally covered. So, here are some of the most common questions (and answers!) about insuring your business – and key facts you should note.

What Potential Risks Does My Business Face?

Of course, every business and industry is unique – and so you need to consider the risks most typically faced by your business. To do this, you may want to consult with a risk assessment specialist or key players within your industry to determine what the most common risk factors are. There are also a few simple questions which will help you highlight potential problem areas:

• Is your business a brick-and-mortar operation, or does it operate solely online? Or is it a hybrid?
• How do you most commonly interact with your clients or customers? The potential risks posed to your business through a customer mishap in-store are different to the risks posed to both parties on social media, for example.
• How large is your staff complement? What percentage of them deal with the public? Are suppliers or contractors involved in this process?
• Do you provide professional or consultation-based services?
• Does your business hold stock of high-value machinery, vehicles, or other specialist equipment?
• Does the nature of your business necessitate offsite work?

Even at a glance, it’s easy to see how these factors might affect your risk profile.

What Business Insurance Options do I Have?

Your business model will often dictate the type/s of insurance you should carry, and it is here where professional guidance is most helpful. Here are just some of the options you’re faced with:

Buildings Insurance

As the name suggests, this covers accidental or circumstantial damage to your buildings and premises. This can include cover against lightning or fire, damage from explosions, structural faults, and more. And of course, this especially applies if you rent premises out to a third party!

Contents Insurance

Again, this is self-explanatory, and particularly relevant if you carry stock of merchandise or have high-value items onsite like tools, machinery, etc.

Professional Indemnity Insurance

This type of insurance serves to protect you from claims in your professional capacity. This can range from a malpractice claim to claims related to professions like accounting, architecture, or asset management, where legal claims can pose a significant risk to your business.

Public Liability Insurance

Public liability insurance serves to protect you in the event of damage or loss being incurred by a member of the public during any interaction with your business. This can range from a vehicle accident to a slip or fall causing injury, to a club member being injured during training or coaching. Also remember that there are certain claims that public liability insurance does not cover.

Accidental Damage Insurance

This serves to cover the events not typically included in claims allowable under buildings or contents insurance – for example, earthquake or flood damage.

Business Interruption Insurance

In the event of your business activities being halted due to an unforeseen (but insured) events like a factory fire, for example, this cover ensures that you receive a measure of financial compensation during that time. This is critically important when it comes to necessities like wage payments and supplier payments.

Portable Possessions Insurance

This is also commonly known as Business All Risks insurance – and serves to cover the damage or loss of items ranging from cell phones to laptops, musical instruments to diagnostic equipment, and even sundries like artwork or catering equipment.

Theft Insurance

This, again, is self-explanatory – but be aware that this type of insurance normally has stringent conditions attached. These can include stipulating that items be securely stored, and that evidence of theft or break-in is required.

How Much Cover Do I Need to be Fully Insured?

This question can only be accurately answered once a proper valuation has been done and will vary from one business to another. Once again, there are a few basic pointers that will help you establish a basic estimate of value:

• Calculate the cost of your business assets and establish what it would cost to replace them. This value is often far more costly than what a casual appraisal would suggest – and of course, in the event of loss, or business interruption, you could fall short or even have to forfeit your business due to lack of funds.
• If you ever have to contest legal liability of some kind, the costs could be enormous. Here, it’s not just about the ruinous consequences of a claim – remember too that the cost of corporate legal representation can easily run into six or seven figures.
• If your business engages in any contractual agreements, the cost of a breached contract – either way – can also be massive, along with the legal and operational issues this can incur.

These examples are not intended to cause undue alarm – but they are a reality of doing business in almost every industry.

What Terms do I Need to Consider When Choosing a Policy?

The terms of even a basic business insurance plan can be quite complex. Here’ it’s best to engage the services of a broker who can help you in several ways:

• Establishing an accurate valuation of your business and your risk profile.
• Recommending the right mix of insurance types and providers, and ensuring you have freedom of choice.
• Helping you avoid costly and unnecessary insurance options which may not serve your best interests.

What Process Should I Follow to Buy Business Insurance?

The first and most important step is to deal with a company which specialises in insuring your business. At the Pogir Group, we’ve served businesses just like yours for decades, and our insurance professionals will be able to guide you, step by step, as you formulate a business insurance portfolio that best suits your needs. This will ensure:

• That your business is neither over-insured nor under-insured.
• That your insurance costs remain affordable in line with your operations and expenses.
• That there is room for natural future expansion of your insurance portfolio as your business grows.
• That you’re kept well-informed of industry changes or trends that may affect your business or potential claims.

Expertise and Experience

At the Pogir Group, our reputation has been built on proven expertise, integrity, and clear communication as part of a healthy relationship with each of our clients. A good insurance provider should not be a faceless entity, but rather a partner in your success. To this end, our highly experienced business insurance brokers are equipped to provide you with expert knowledge and support when you need it most. In addition to short-term insurance, The Pogir Group also offers tailor-made life financial planning, personal and corporate healthcare solutions, employee benefit programs, and expert wealth management. For more information, contact us today to arrange a no-obligation consultation. Pogir. Smart, with heart.     LINK INDEX 70% of vehicles are not insured https://www.sapeople.com/2020/04/01/third-party-car-insurances-70-of-cars-in-south-africa-are-not-insured/ hijacking statistics https://www.statssa.gov.za/?p=15700#:~:text=The%20estimated%20137%20000%20hijackings,all%20incidences%20to%20the%20police conditional exclusions https://compareguru.co.za/news/aware-common-insurance-exclusions short-term insurance https://www.pogir.co.za/short-term-insurance/ contact us https://www.pogir.co.za/contact-us/