In 2016, South Africa experienced deteriorating GDP growth caused by various factors including the Rand’s depreciation of R15.51 against the Dollar, severe drought, water shortages, and the rising unemployment rate. GDP growth is however expected to improve moderately in 2017. Businesses, particularly start-ups and SMEs, can expect better growth and opportunity than in 2016. “Now more than ever small businesses need to safeguard themselves against the perils that could be harmful to their growing business,” says Derek Wilson, Head of online insurance and financial services comparison website, Hippo.co.za . Business Insurance is more than just protecting your business assets. Not having insurance could result in a negative impact to your bottom line, damage to your business’s reputation or even the loss of your business. Here’s what you need to know about Business Insurance: Insure your nett worth If you have business property such as commercial offices, a house or any vehicles used ...

Can your business rise from the ashes? Clayton Ellary With drought conditions deepening in South Africa, fire risks increase, demanding more stringent fire risk mitigation and planning. A recent review of commercial fire claims and business shutdowns by authorities due to non-compliance with regulations suggests that business operators are not heeding this call seriously enough. According to Clayton Ellary, a Senior Account Executive at Aon South Africa , fire is an underrated risk, particularly in South Africa. “Failure to comply with the statutory requirements and codes of practice for fire protection can leave business stakeholders in severe financial crisis and with potential legal implications. The costs arising out of the loss of life, assets and business interruption can amount to millions of Rand in damages and liability claims. Despite the risk to business continuity, financial security and brand reputation, many business owners remain indifferent to the domino effec...

Annelie Smith The risks facing businesses are greater than ever. Each day a business and its executives are exposed to a vast array of risks - both internally and externally - that have the potential to negatively impact a business’ cash flow, operations, reputation and ultimately the success of the business. According to Annelie Smith, Corporate Executive at Risk Benefit Solutions (RBS) , often businesses, and in particular small and medium enterprises (SMEs), don’t know the true extent of the risks impacting their business, or have measures in place to protect themselves from the consequences of these risks.  She adds that when implementing a risk management plan, businesses need to identify all possible threats against their business. “Often businesses obtain insurance for the more ‘obvious’ risks such as fire and perils, theft and damage to property. There are however so many other lurking risks which could be harmful to a business if the necessary protective measures...

Under-insuring your business has major repercussions Companies throw the dice by cancelling or not renewing their insurance. Businesses that choose to cut down on insurance cover to save costs are playing a risky game more akin to gambling than good business practice, according to Gerald Juma, Corporate and Business Insurance Regional Manager at Standard Bank. South Africa’s economy is struggling to eke out anything over 2% growth, while inflation has dropped below 4% – a four-year low. The slow conditions are placing pressure on businesses to cut back on costs – and insurance is often one of the first expenses to face the chop.  “In terms of priority, companies need to ensure the lights stay on and that there is electricity, for example, but this shouldn’t mean insurance is a lower priority,” says Mr Juma. Without adequate insurance coverage, a company could never financially recover if a fire were to raze it to the ground, for instance. “Instead of cutting insurance, co...

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...