It is not easy to run a business as there are constant changes and pressures that you need to manage as a business owner. All businesses want to thrive and grow, despite the many challenges involved with having a business – after all the effort is worth it when you have built a successful business. Part of running a successful business is being able to mitigate against the many risks involved such as natural disasters, theft and damage. Lize Badenhorst, General Manager at iMas Insurance Brokers talks about the importance of having the right business insurance in place, no matter what line of business you are in.
1. Running a business is costly and business insurance is sometimes considered as a grudge purchase. From your experience, why do you think business insurance is a necessity?
Lize: Protecting your business against unforeseen losses is essential. No one expects losses and/or damages to occur, but there are many instances where we cannot predict or prevent such losses. As example the Natal riots caused hundreds of business huge losses and businesses that did not have the necessary insurance cover in place suffered damages that put the business owners in dire financial trouble. Many business owners had to close their businesses as they were not able to carry the financial losses themselves.
2. Is there a one-size-fits-all type of policy that businesses can take out to cover them against loss and damage or would a business need customised cover for the industry they are in?
Lize: Each business is unique and their cover should be unique to their business, the business size, the business type, the business premises etc, all will be uniquely different and will need bespoke solutions to cover their risk of financial loss due to unforeseen and unplanned events. That is where iMas Insurance Brokers can advise business owners of their unique risks and search for the best possible cover suiting each business’ insurance needs.
3. What are the benefits of using an insurance broker when you want to take out insurance for your business?
Lize: Business insurance is not a one solutions fits all. As alluded to, iMas Insurance Brokers can advise business owners on their unique insurance cover needs suited to their business. Whether a small business on a street corner or a larger business in a shopping mall, we partnered with the most reputable insurance companies so that we can offer bespoke solutions unique to each business.
4. Can you give us and example where a business experienced loss due to inadequate/no cover?
Lize: Unfortunately, there are lots of examples of uninsured or inadequately insured businesses that caused financial ruin to a business owner. Some examples already mentioned after the riots we experienced last year. If businesses did not have the required SASRIA cover, there would have been inadequate cover or even no cover. The Natal Floods is another example of where many businesses lost stock, and even had to close down for a while to clean up and order new stock. Many businesses did not have the required Business Interruption cover to assist during these times.
5. What advice would you give SMMEs that does not have a big cashflow yet, but want to make sure that they are covered against loss and damage?
Lize: Contact Make use of our services to discuss essential cover and together with the business owners plan to mitigate the risk of large losses. We have several solutions and can also plan around limited cashflow and at least start off with covering some risks.