Small Business in South Africa is essential for economic growth. Research by Global Entrepreneurship Monitor showed that small businesses created more than 50 percent of all employment opportunities in South Africa, while contributing more than 45 percent of the country’s gross domestic product (GDP) Government is committed to provide the right enabling environment that is needed if small business is to realise its huge potential for transforming South Africa’s economy.
This is good news for small businesses. It bodes well for future growth. A successful business should grow, but business owners must realise that the bigger your business becomes, the more risk it can be exposed to. Becoming larger can mean that you are hiring more employees, opening another location, expanding the size of your premises, or adding to your inventory. All of this means changes to your insurance, mostly pointing towards needing to increase your coverage.
It is important to update your commercial insurance as your business expands to reflect the risks to which it is exposed. Your old policies may not provide sufficient coverage anymore. Don’t get caught off-guard – look at how you should adapt your insurance.
Employers’ liability insurance
Sometimes you start off as a sole trader and as your business expands, you might hire employees. In this case you will need an employers’ liability insurance policy. If you already employ staff, revisit your employers’ liability policy to assess whether it still meets your needs. You might also have to update your Workers’ Compensation Insurance. Bringing on new staff members means you have new responsibilities to their safety. Check with your insurance advisor on how much coverage is adequate to protect your business.
Business interruption Insurance
If your business is lucrative, you should protect it against unexpected events, which could cause interruption and undo all of your good work. Make sure you protect your profit margins, should something happen to prevent your business from operating and sustaining its own cash flow.
Errors & Omissions Insurance
As your business grows and brings on new products and services, you run a higher risk of financial damage or personal injury. Consider getting an E&O policy in place to protect yourself.
Expanding business premises
Have you moved to bigger premises? You might need to update your commercial property insurance policy. Have you acquired more technology and IT systems? Make sure the updated value is covered under your insurance. When you buy a new piece of equipment, new machinery, software or move to a new location, your risk of property damage increases, which means you have to update your coverage regularly.
More commercial vehicles
If you are using your vehicle for business, if your vehicle has some branding on it or if any of your staff is using the vehicle, you need to ensure that you have the right commercial vehicle insurance in place.
business owner. No one is more aware than a small business owner about the importance of being prepared for anything! Having commercial coverage and professional advisors can help make your life a little easier. Remember to keep your insurance updated as you expand and grow.
Contact your Indwe advisor to see what risks your business might face and which solutions are ideal to cover your business requirements.