Tag: business interruption

  • BOOMING BUSINESS: WHEN YOU’LL NEED INSURANCE

    BOOMING BUSINESS: WHEN YOU’LL NEED INSURANCE

     

    Starting and running a small business can feel like walking a tightrope. Every decision, especially financial ones, feels consequential. While keeping costs low is a priority, skipping business insurance might leave you exposed to risks that could cripple your budding enterprise. The challenge is figuring out when you really need it. Here’s a breakdown to help you decide.

     

    Why Your Small Business Needs Insurance

    To Cover Equipment:

    Your equipment is the backbone of your business. From high-end tools to everyday essentials, these items can take a significant chunk out of your budget.

    Even home-based businesses need insurance to cover related risks such as inventory loss, legal expenses, or income disruption.

    To Protect Employees:

    Hiring your first employee is a big milestone, but it comes with responsibility. Offering employer’s liability cover not only attracts top talent, but also reassures them that you’re prepared for unforeseen circumstances.

    To Cover Your Premises:

    Your first physical location, whether a small storefront or a spacious warehouse, is an exciting step forward. Many commercial leases require tenants to carry business insurance to cover potential liabilities.

     

    What Happens if You Don’t Have Insurance?

    Small and medium enterprises (SMEs) and start-ups face a variety of risks, from financial challenges to operational disruptions. Without insurance these risks could result in:

    • Financial losses: A single unbudgeted claim can derail your operations.
    • Loss of income: Interruptions caused by theft, equipment failure, or natural disasters might force you to shut down temporarily.
    • Legal liabilities: Without liability coverage, you could face expensive lawsuits from third-party claims such as accidental injuries or damages.

     

    Types of Cover to Consider

    As you map out the right plan for your small business, here are essential types of cover to explore:

    • Broadform Liability: Covers third-party damages or injuries.
    • Buildings Combined: Protects your premises against damages or loss.
    • Employer’s Liability Insurance: Supports employees in case of workplace incidents.
    • Business Interruption: Covers income lost during operational disruptions.
    • Vehicle Insurance: Essential for businesses with cars, vans, or fleets.

     

    Don’t Wait Until It’s Too Late

    Taking proactive steps now ensures you’re covered from the start, so you don’t face the financial strain of an unexpected event.

    Hand over the risks, today! Talk to a business insurance expert to build tailored cover that suits your business needs.

  • EXPLAINED: BUSINESS INTERRUPTION COVER

    EXPLAINED: BUSINESS INTERRUPTION COVER

     

    Helping You Return to ‘Business as Usual’

    Picture this: Your business is thriving, everything’s running smoothly, and then disaster strikes! Whether it’s a fire, a flood, or any other unforeseen calamity, the interruption to your operations can be financially devastating. But fear not, because dotsure.co.za can save the day.

     

    What’s Covered?

    Business Interruption Cover steps in when your business grinds to a halt due to damage to your insured property. This includes scenarios covered under the fire, building combined, and office contents sections, or any other material damage insurance that safeguards your interests.

     

    Understanding the Basics

    When it comes to calculating your losses, we consider factors such as your annual turnover, revenue, and gross rentals. These figures are adjusted to reflect your business’s trends and any specific circumstances affecting it.

     

    The Indemnity Period

    This is the duration for which compensation is payable under your Business Interruption Cover. It starts from the date of the loss or damage and ends no later than the maximum indemnity period stated in your policy schedule.

     

    Making Sense of the Specifics

    We cover various aspects of your business operations, including:

    • Gross Profit (Difference Basis)

    This covers the loss of gross profit due to reduced turnover and increased cost of working. Essentially, it helps bridge the gap between your normal earnings and the downturn caused by the interruption.

    • Gross Profit (Additions Basis)

    Similar to the difference basis, this covers loss of gross profit, but also includes additional expenses incurred to maintain operations during the interruption.

    • Gross Rentals

    If your business relies on rental income, we will compensate you for any shortfall in gross rentals during the indemnity period.

    • Revenue

    It covers the loss of revenue during the interruption period, helping you to stay financially afloat despite the setback.

    • Additional Increase in Cost of Working

    For any reasonable additional expenses necessary to keep your business running smoothly during the interruption.

    • Wages

    It covers the loss incurred by paying wages during the indemnity period for employees whose services couldn’t be utilised fully due to the interruption.

     

    Key Takeaways

    • Act Quickly:

    It’s essential to take practical steps to minimise interruption to your business or avoid further losses after the damage occurs.

    • Keep Records:

    Any sales or services rendered from alternative premises during the interruption period need to be documented and accounted for in your claims.

     

    Business insurance acts as a financial safety net, helping you weather the storm when the unexpected happens. So, focus on running your business with peace of mind, knowing that dotsure.co.za has your back when you need it most.