Why insurance should be first on the list

Markus Fourie, PSG’s Insure Adviser of the Year from PSG Insure Olympus Midas Avenue Short-Term

Whenever your circumstances change it will impact your insurance cover, no matter how big or small the shift. So, you should always ensure that you update your insurance cover as soon as possible. Some examples include moving, your older child driving your vehicle or adding the second-hand vehicle you recently purchased, buying a new gadget (or upgrading) or renovating your property. Starting a new business certainly requires an insurance rethink – as does an existing business if it is not already covered.

One might think starting a small business, especially one run from home or a shared workspace, won’t have the same risks as a large corporate office with many employees. However, fire, flood and even fraud risks do not discriminate by size. It doesn’t matter if you have a lot or a little to lose, or when you opened shop; a natural disaster or accident could demolish your dreams in an instant. That’s why adding insurance to the mix in the early stages of any change, makes a big difference.

Short-term insurance acts as a safety net to cushion any blows. Business insurance is such a crucial component of any successful venture. Here are some key considerations when it comes to getting covered.

• The type of business you have.
• Physical address – where the business is located and how secure it is matters.
• Stock in trade (any stock being sold or traded)
• Risk (this would be your business description and would provide insight to the insurer with respect to the type of cover required). One way to illustrate this would be if you were selling and mixing chemicals on site. The insurer would need to confirm that you are attending to all the necessary safety regulations and have the necessary fire precaution measurements in place.
• If you are renting an office premises, it would be advisable to refer to your rental agreement, as commercial building leases usually include a standard clause, which notes that you are responsible for public liability insurance.
• The amount of risk exposure may differ if you share an office space with another company or ‘hot desk’.
• Remember to specify your electronic items (Laptops, printers, servers, cell phones, cordless point of sale devices – anything that is easy to steal, the list can go on)
• You may also now be using your vehicle more than before for business purposes, so this is most important to disclose and include on your business policy, as the risk may be limited on your personal policy depending on the type of business you are involved in.

When in doubt, disclose
If you aren’t sure if some aspects of your business or home and other personal assets need protection, follow the golden rule. If you are in doubt, simply disclose your situation to assess if you need cover or not.

It is not always necessary to take out all cover sections. You can proceed in standard cover selections and then as your business or wealth grows, can extend your cover as needed. Working closely with a financial adviser will ensure every consideration is accounted for in your work and home life. Considering your bigger picture means you can plan for anything that could impact your financial plan. Being one step ahead can really count, just when you need it to, so don’t delay getting your short-term insurance in place.