Many small business owners think commercial insurance is a luxury that only larger or more established businesses can afford. However, Johan Scheepers, founder and primary insurance broker at Northern Natal Insurance Brokers (NNIB), says commercial insurance is something every business should include in its budget.
“Commercial insurance no only offers you financial protection against actual damage to your business property such as buildings, equipment and inventory but can also act as a buffer when you lose income should your business need to be temporarily closed,” says Johan Scheepers.
“No-one can predict the future and when disaster strikes and your business is uninsured, you will need to cover losses out of your own pocket, which is not always financially possible.”
He explains commercial insurance offers a business owner protection against natural disasters, lawsuits as a result of perceived negligence, defective workmanship or employer’s liability.
“Another benefit that business owners often do not take into account, is that commercial insurance makes you credible,” says Johan Scheepers. “By insuring your business correctly, you are not only safeguarding your clients, you are also protected against possible risks in your business such as product liability, employer’s liability, vehicle theft or damage, equipment and stock damages or loss, or losses due to lightning or fire.”
Johan Scheepers points out that business owners should be aware that personal insurance policies such as home insurance usually exclude business activities and cannot be regarded as sufficient commercial insurance.
He highlights that not all businesses are the same and each business’s insurance needs will differ depending on a variety of aspects. “You need to keep all the relevant variables in mind and ensure you have adequate coverage, while still keeping your insurance affordable and within your budget,” says Johan Scheepers.
“Discussing your insurance needs with a professional and having an insurance package tailored to perfectly suit your needs, is a smart move to keep your business up and running, no matter what the future holds.”