Commercial insurance for small businesses

While your specific insurance needs will depend, in part, on the type of business you operate, all business owners should consider at least three types of insurance.

Business property insurance

Business property insurance covers your assets against various losses that result from natural and man-made causes. Check your chosen policy to determine which assets and events it covers, and purchase riders for any additional cover you feel is necessary. You may want to cover any building you own and its contents (eg furniture, office equipment, inventory and supplies). If you lease space, you may still want to purchase property insurance as your landlord’s building insurance will not cover your business possessions. If you run your business from your home, you should consider purchasing separate business property insurance. In most cases, a home owners’ policy does not cover the use of your home for business purposes.

Liability cover

Liability cover provides protection in the event of lawsuits that could arise if the services or products you provide cause injury or harm to your customers or their property. Liability cover covers the cost of these damages, as well as attorney fees. A similar type of protection for professionals is called Errors & Omissions insurance.

Workers’ compensation cover

If you have employees, you are required by law to purchase workers’ compensation insurance. This insurance covers medical expenses and at least a portion of lost wages for employees injured or taken ill as a result of their employment. The law that governs the risk in South Africa is the Compensation of Occupational Injury and Disease Act (COID) which determines the maximum number of employees and the type of employees (eg independent contractors) who may be excluded from cover.

For more information on your commercial insurance needs SMS quote to 45577 or click here. Ts and Cs apply. This article was written by Auto & General Insurance Company Limited, an authorised financial services provider (FSP number 16354).

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