Once you have your business up and running – you will want to protect it. After all, it is a vital asset – possibly your main asset after owning a home. When you think about the various aspects of running any business, you will realise that carrying minimum insurance to cover perhaps inventory or the building is hardly enough.
If you have employees, you are responsible for their wellbeing when they are on your premises. In addition, you are also responsible for the wellbeing of your customers when they enter your door. Insurance is your chief solution with regard to protecting your business against any form of harm befalling people who either work for you or buy from you. Business insurance is there to protect you financially from the consequences of accidents or harmful events and the unexpected.
Commercial property insurance: A fire or flood or an explosion can destroy your building and/or inventory. Fire and Hazard insurance will protect your company’s assets in case of damaging and unpredictable circumstances.
General liability insurance: If one of your customers slips, breaks their leg, and needs to go to the hospital, your business insurance can help pay their medical costs. Product liability on the other hand (sometimes called ‘commercial liability’) helps cover the costs of claims made against your business if a product of yours has harmed a customer.
Business income insurance: Business income insurance helps replace lost income when your business can’t operate as a result of illness or any other unexpected reason. It means you can continue to pay bills and your staff to keep the business viable. Should an accident, fire or riot force your business to close during repairs, then business income insurance can help replace the income lost during these circumstances.
Data breach insurance: Should such a breach occur, then you should be protected – both with regard to the damage to your business, as well as customers. This coverage can help pay for: Identity protection solutions; Public relations; Legal fees; Liability with regard to Client Information.
Workers’ Compensation: If your employees suffer work-related injuries or illness, your insurance should be there to cover issues such as: Medical care; Missed wages; Funeral benefits; Disability, etc. Workers’ Compensation provides financial support to employees who are unable to work because of a job-related injury or illness.
Contractual business insurance: Business often involves drawing up contracts. Anything, in fact, that involves money one way or another, should be protected by insurance. These contracts may include: Building rental contracts; Borrowing money to finance goods; Loan agreements; Client agreements.
How business insurance supports your business
- Financial value: The real value of business insurance lies in the fact that the financial consequences of a potential mishap could easily wipe out the assets of a business – particularly a small business. Insurance provides protection in the event of customers or passers-by experiencing harm at the hands of your company, or as a result of using a company product.
- Impressions: Your business insurance does more than protect your business. Having the right policies shows customers and contractors that you take managing risk seriously, and will provide the right protection no matter the nature of the event.
- Recruiting and retaining employees: Employees look for more than just a salary as they search for jobs. They’re also looking for the right benefits, like life and health insurance. Businesses without insurance often miss out on attracting and retaining the best employees.
- Management or ‘key person’ insurance: Your management liability insurance can help cover: the owner of the business; CEO; any key person essential to the running of your business – should these vital personnel be unable to fulfil their role and contribute effectively to the company’s profits.
- Natural disasters: We all know that any kind of disaster can strike at any time. Being prepared for this – and what could be devasting loss means insuring your business against: Flooding; Fires; Storms; Lightning, etc.
- Helping with lawsuits: Lawsuits are something we hope we don’t have to deal with, but should a situation arise that lands you in the hot waters of the courts, then business insurance is vitally important in covering costs, or helping you manage any long-term expenses you may be forced to cover in order to make good.
- Peace of Mind: When you are a business owner, you are responsible for so many factors. Having insurance to support these responsibilities, and to protect your business, is a prime strategy for ensuring peace of mind. The less you have to worry about, the more you can focus on developing your business.
Check your policies, check your life
VeriFi is an online tool that provides you with an immediate and up-to-date overview of all your life insurance and investment policies by sourcing information from all the major life insurance companies – and presenting the information in a comprehensive report.
With VeriFi you are able, for no charge, to access information on all your life and investment policies at a glance. You are able to check the types of policies you have, the names of the insurance companies providing the cover, the nature and extent of the insurance cover provided – and other vitally important information such as the details on your policies being correct.
To find out more, please visit: www.verifi.co.za