The pandemic has taught us one major lesson, and that is to have the required insurance. Well, that, and to be fully legally compliant with staff, tax, and UIF payments.
Nobody would have predicted a global shutdown of business and life as we know it, and insurance companies definitely did not anticipate them having to pay out millions for business disruption claims.
Here is what you need to look out for when insuring against the unknown.
General business insurance
When you have a small business, it is a grudge expense to have general insurance to cover your assets. Many companies would not have thought about taking business interruption insurance. Based on the many insurances claims that companies took to court, neither did the insurance companies.
They hid behind legal jargon and unclear phrases to try to get out of paying claims based on technicalities. They lost this fight and have had to pay the companies that had genuine claims.
The lesson is to read your policy documents carefully and fully understand what they mean vs. what you think they mean.
Insurance companies don’t like paying claims; they will try anything to avoid paying you out if they can find a reason not to.
Staff and unemployment insurance
Not being legally compliant in terms of staff UIF payments, registration and tax, felt the brunt of it for many people. The TERS payments helped many families get through some tough months. Some families lost out on government assistance by not paying company tax, personal tax, or UIF.
Riot, political and malicious acts, riots, strikes, terrorism, and public disorder insurance
SASRIA is a state-owned company that provides companies cover due to unrest, riots, public damage, etc. Over the last few weeks, the turmoil in South Africa is a prime example of when this type of cover comes into effect.
For more information on how SASRIA cover can help your business, click here
Bizcash offers businesses Trade Credit Insurance, which protects you against debtors defaulting against their payment commitments to you. For more information on how Bizcash can help you, get in touch with us on 0861 93 93 93 or email us on email@example.com or contact us here.
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