8 Types of insurance your business must have


You expose yourself to risk from the first day you start a business, so it’s essential small business owners have the right insurance in place.

One unexpected catastrophic event or lawsuit could destroy your business.

The eight most common areas you need to address to protect your business in time of need.

  • Property
  • Business contents
  • Professional liability
  • Business Interruption
  • Vehicles
  • Goods in transit
  • Fidelity
  • Cyber cover

1. Property

What does it cover?

The building / warehouse premises you operate your business from.

Why you need it:

Your physical business premises should be covered against structural damage which could result from flooding, a burst geyser, fire or other unexpected events.

What if I rent my premises?

If you rent your premises, the landlord is responsible – make sure to read your rental contract carefully.

2. Business contents

What does it cover?

All your movable assets like furniture, machinery, electronic equipment etc.

Why you need it:

Losing or damage caused to your physical assets without adequate cover could cripple a small business.

What about assets I take out of the office?

Physical assets, like laptops and cellphones, you take out of the office should be covered under the all-risk cover.

3. Professional liability

What does it cover?

It covers a business against someone suing you for accidental death, injury, damage or loss of another person’s property, including your employees.

Why do I need it?

Accidents or unforseen events happen that could make you or your business liable. Better to be safe than sorry.

4. Business interruption

What does it cover?

In the event of a disaster or catastrophic occurrence, a business’s operations will likely be interrupted.

What do you mean by disaster or catastrophic occurrence?

The usual insured perils like fire, flooding, hail damage etc.

Why you need it:

The cover is to ensure your operating costs are taken care of. Stuff like salaries, rent and debt. It does not cover loss of profits.

Interesting to note:

Events that are predictable, like a city running out of water, will not be covered.

5. Vehicles

What does it cover?

This insurance covers all road vehicles (trucks, cars, motorcycles, etc).

Why you need it:

If company vehicles are used, insurance will protect businesses against liability if an accident should occur.

What type of businesses need this cover?

Businesses that rely on sales representatives or delivery of products.

6. Goods in transit

What does it cover?

If your business transports goods to customers, then those goods transported are covered.

Why do I need it?

In South Africa roads accidents are unfortunately part of everyday life.

What does it not cover?

This cover does not extend to transporting your own goods between warehouses for instance.

7. Fidelity insurance

What does it cover?

Fidelity insurance protects you after an employee put their hands in the till and got away with it. All losses incurred through theft or fraud by employees are covered.

Why do I need it?

For small businesses financial fraud could be be disastrous without cover.

8. Cyber cover

What does it cover?

Cyber insurance helps companies to recover from data loss and reputational damage due to a security violation or other cyber events.

Why do I need it?

If you store sensitive or non-public information about employees or clients on your computers, servers or in paper files you are responsible for protecting that information. If you are hacked you leave yourself open to fines, penalties and lawsuits from customers and suppliers.

How much does small business insurance cost?

There are many factors that influence the type and cost of a small business insurance policies. Each small business also has its own unique features.

There may be other types of insurance you should consider apart from these eight.

Contact us today for a proper assessment of your business needs and an idea what you might pay for a policy.

* This article is informational and educational and should not be used or relied on as financial or professional advice. No liability can be accepted for any errors or omissions nor for any loss from reliance upon any information herein.


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