Unique online tool solves SA's SMME legal liability problems

SA’s premier comprehensive online quoting and policy issuing system launched to safeguard SMMEs against legal liabilities.

Small, Medium and Micro enterprises (SMMEs) form the backbone and future of the local economy as not only do they contribute up to 34% of South Africa’s Gross Domestic Product, but 338 000 of these small businesses have employees. As a result, it is imperative that these businesses are protected, wherever possible, against the risk of liquidation following litigation to avoid damage to the economy and employment growth.

This is according to Simon Colman, Underwriting Executive at Stalker Hutchison Admiral (SHA) - the largest liability underwriting management agency (UMA) in Southern Africa – who says the only way to protect a company financially against the repercussions of litigation is through proper liability cover. “As a result of this need, SHA has launched South Africa’s premier comprehensive broad form liability quoting and policy issuing system called SMME CLIQ (Cloud Linked Instaquote) to provide the necessary protection for the SMME industry at the click of a button.”

He says SMME CLIQ s designed to deliver affordable quotations and policy documents to brokers within minutes, mitigating the need to complete a proposal form. “Even brokers with limited resources can access proper broad form liability insurance quotations without the lengthy administrative delays normally associated with this line of business.

Colman explains that the traditional insurance market generally requires these types of businesses to insure their assets in order to access liability insurance. “This can be problematic if the business does not have property to insure, or if they do not want to insure their assets. This is particularly true of the construction and service industries (plumbers, building contractors, electricians etc.) where they are not allowed on third party property without proper liability insurance and their asset base is fairly nominal. SMME CLIQ gives the brokers of these entities instant access to wide cover.”

SHA was inspired to develop this product to cater for the increasingly fast-paced nature of the financial services industry resulting in clients expecting` very fast turnaround times from their brokers, says Colman. “SMME CLIQ enables the intermediary to access an online platform to generate quotes in the client’s offices and then to present them with policy documents within minutes. Brokers can also access data relating to the clients they have quoted to in the past on SMME CLIQ, in a secure environment.”

SMME CLIQ provides access to the types of cover which have been tailored to protect businesses against the following risks of liability arising:
• On the premises (public liability) - slip and fall type claims
• Away from the premises (work away liability)
• Out of products supplied by the insured (product liability)
• Out of defective workmanship
• Product Recall - to cover the costs of recovering dangerous products and notifying the public;
• On site gradual pollution (gradual pollution liability) – which is not limited to ‘sudden, unintended and unexpected events”, covers damages and injury to third parties caused by the gradual migration of pollutants
• The defence against the imposition of a fine in terms of the Consumer Protection Act.

We’ve combined SHA’s 29 years of liability cover experience and the skills of top local and international developers to create SMME CLIQ, says Colman. “For now, the focus is on general liability business but other specialist lines will be added in the near future.”

SHA only deals with licensed short-term insurance brokers who can access SMME CLIQ online through their unique ID and password provided by SHA. SMME CLIQ complies with FAIS legislation; full policy documentation and disclosure documents are generated for viewing and onward transmission by the broker to the client.

“SHA fully supports the entrepreneurial spirit of South African businesses and believes this new product will assist to build and protect the contributions of small businesses to the local economy,” concludes Colman.