You’re now living the reality you dreamed about when first starting your small business. Sweat and tears have been spent, and there’s no doubt you would do anything to protect and see your budding business is safe and secure.
From the very start, there has always been a lot that goes into managing the daily operations of your business. As the captain of your ship, there has been a good deal to do. The financial aspect, managing your business premises, your marketing campaigns, and most importantly, your business insurance.
Many small business owners are focused on the important daily to-do’s, that reviewing your business insurance coverage can fall through the cracks.
As your business grows and expands, it’s very important to ensure your original insurance plan is still suitable for your current operational model.
We’ll walk you through the process of reviewing your business insurance, and help you focus on what you need to consider when reevaluating your insurance plan.
A risk-management program that is implemented well and is suitable for your business will let you rest easy, knowing that unforeseen events won’t bring your business operations to a halt.
Reviewing your growing business activities to see if your insurance cover is still relevant
As a growing business, your business operations will inevitably grow, offering new services or expanding on what you already have to offer. This means that there will be new liabilities that are linked to your new services, and you could be left exposed and unaware.
For example, if you run a small restaurant, eatery, or café, you may now offer extra services such as delivery or event catering. You may be a nail technician or beauty and make-up specialist, and now have different services and treatments available.
Seeing your operations expand and grow as a small business owner is beyond exciting and fulfilling, but these developments also create possible risks for you and your business, without the right type of insurance cover.
This is why it’s important to review your existing insurance plan, and ensure the cover you currently have is still relevant.
Does your original insurance plan fully cover your current business activities, and are the types of cover enough?
Does my business need new types of insurance cover?
The insurance you established in the beginning of your business journey may no longer fit with the needs of your growing business. You may need to add certain types of cover.
Here are some examples of when you may need to review your insurance plan to include further cover:
- Mobile / off-site services are now on offer. If you’re a nail technician, and now offer remote and mobile services. Your valuable equipment and products need to be protected from accidents and damage. Portable Possessions Insurance is the cover you’ll need to consider for this.
- You’ve bought a premise for your business! This exciting addition will be one of your greatest assets and needs to be protected from accidents and damage, such as theft, fires, etc. Buildings Insurance and Contents Insurance is designed to protect your important business assets and your property.
- You’ve acquired machinery. These important and costly assets are essential for your business operations and are covered under Machinery Breakdown Insurance.
Does my old insurance plan give me enough cover for my current business operations?
If you find yourself asking this question, it’s probably best to review your old insurance plan. By reviewing your original policy and your current business situation, you can determine if anything new falls outside the bubble of your cover.
A few factors to review when trying to determine if your old policy covers all your current business operations:
- Does your business have any new assets that you have purchased?
- Have you hired new staff members?
- Does your business have a greater turnover?
- Does your business undertake larger projects or jobs, making potential costing claims higher?
A brief summary of important types of business insurance
If you’re not familiar with the different kinds of business insurance available, keeping your growing business in mind, take a look at the details below.
Examples of different Business Insurance types:
- Business Interruption
- Contents
- Building
- Machinery Breakdown
- Management Liability
- Portable Equipment
Business Interruption
Business Interruption Insurance provides protection from a loss of income and increased costs, that are the result of an insured event (such as a fire, property damage, etc.)
Business Interruption is designed to assist your business in recovering from the loss of such an event and helps you by paying for ongoing expenses, such as wages or rent.
Contents
Contents Insurance is a type of business insurance that provides cover for the items inside your building. This includes office content, plants and machinery, stock and materials in trade, and miscellaneous items. Designed to protect the valuable assets of your business.
Building
Buildings Insurance is a form of business insurance that covers the cost of repairing or rebuilding your premises in the event of fires, storms, explosions, lightning damage, etc. This is especially important for those who work from their premises or rent them out.
Machinery Breakdown
Machinery Breakdown insurance covers the loss of unexpected machinery breakdown, and can also include the loss from business interruption.
Machines covered in this section are sometimes required to have an active maintenance plan.
Professional Indemnity
Professional Indemnity insurance is designed to protect you from claims, against you and your business, as a result of negligent acts or omissions in providing your professional services or advice.
This policy will also assist with the legal costs to respond and manage such claims.
Examples of Professional Indemnity insurance claims:
- Providing the wrong treatment or diagnosis
- Wrong advice provided
- Misinterpretation/Miscalculation/Overestimation
Portable Possessions
Portable Possessions, also known as Business All Risks, is a type of business insurance that will provide cover for the loss or damage of your tools or work items.
Such items could include equipment, tools, laptops, and mobile phones. More unique items are also seen, such as art, marquees, and musical instruments.
Grow, Adapt, and Thrive
As with any business, life will present you with many challenges and obstacles throughout your journey.
Adapting to the times and your own growth is paramount to keeping your operational momentum.
Don’t let outdated insurance cover be the reason your growing business suffers. Find and compare the best quotes today, tailored to your specific business needs. With just a few clicks you can get multiple competitive quotes from some of South Africa’s leading insurers, and get covered instantly – Business Insurance Made Easy.
This is general information only and does not take into account your financial situation, needs, or specific objectives. As with any insurance, the cover will be subject to the terms, conditions, and exclusions contained in the policy wording.