SA Business owners face increased risk this festive season

With the festive season around the corner, many business owners find themselves under a lot of pressure to ensure everything is up to date before they close. However, one area that businesses often overlook is taking adequate measures to ensure they are protected from the increased risks during this period.

According to JonJon Smit, Sales Director at CIB Insurance Solutions (CIB), reviewing security, safety and insurance measures may be the last thing on a business owner’s mind yet they can be even more crucial at this time of year. “Some of the biggest risks facing businesses can actually increase over the Christmas period as many premises are left unattended for an extended period.”

“Business owners should ensure that all security measures surrounding the premises are adequate, by checking the alarm system and making sure it is in good working order, as well as securing or removing all expensive items from the premises,” says Smit.

Smit says that the standard business insurance policy does not include any exclusions for premises being left unattended over this period but he warns that insurers do insist on adequate security provisions being in place for any businesses that do close.

“Theft tends to be uppermost in business owners minds, especially at this time of year, but if your premises are left unoccupied for an extended period of time, you also run the very real risk of water damage and lightning damage from ever present thunderstorms or a fire being left unnoticed and causing extensive damage,” says Smit.

He advises offices that put up electrical decorations to take them down before closing the office to minimise the risk of any electrical fires and to also ensure that any additional stock being held during Christmas is not blocking intruder alarms, sprinkler systems or fire exits.

Business owners should also make sure they don’t leave reviewing their insurance policies to the last minute as they may find it harder to get certain levels of cover during this time. “Insurers are wary of clients taking out new insurance cover over the festive period, especially if the business has never been insured before.”

For those companies that traditionally stay open during the period, the risks are also greater. “It is especially important for businesses that do operate over the Christmas period, such as retailers, to ensure that their insurance cover is adequate, as a rise in cash takings as well as more stock being kept on the premises for the period can lead to an increase in theft.

Smit has some key tips for businesses over the festive season:

§ Make sure your business is appropriately covered and that all premiums are paid and up-to-date.

§ Check all your alarm and sprinkler systems and ensure that security is adequate.

§ Make sure all electrical components are safely secured and unplugged to avoid any electrical faults or damage by lightning.

§ If you are taking on extra staff ensure that you do proper background checks

§ Regularly remove cash from premises and place takings within a safe