Five insurance nightmares that keep business owners awake at night Load shedding is at the top of the agenda  Bryan Verpoort South African business owners’ worst fears of the 2008 blackouts re-occurring are being realised with billions of rand in potential economic growth being wiped out every month as widespread power outages affect the country.  “Load shedding currently tops the list of insurance nightmares keeping business owners awake at night. But they are also nightmares which businesses can insure against,” says Bryan Verpoort, Head of Corporate and Business Insurance at Standard Bank, as he unpacks five insurance risks that every business owner should make sure they are adequately protected against:    Load shedding Persistent load shedding is the number one insurance nightmare for companies and individuals, because most policies simply do not cover the consequential damages that could arise from a power cut. Mr Verpoort says the problem is t...

Business interruption insurance is not a solution for load shedding risks 90% of business interruption insurance claims as a result of load shedding will not be paid out  Bryan Verpoort Blackouts are estimated to have shaved 0.3% off GDP, or $940 million, in 2014 after the country experienced weeks of rolling power cuts – the first since 2008. A continuation of this trend this year has placed increasing strain on an economy struggling to eke out even 2% growth, and as a result many businesses are mistakenly taking out business interruption policies as cover against power outages.  Bryan Verpoort, Head of Corporate and Business Insurance at Standard Bank, says business interruption insurance should not be seen as a solution for load shedding. “In terms of insurance - If a risk is not foreseeable, then you need to take precautions – but load shedding is foreseeable, which makes it challenging to insure.” “What this means is that a loss of profits needs to have been ca...