Business Insurance: the vital safety net for brand investment
Whether you’re in big business, small business, or run your own show, one thing is for sure: an awful lot of work and effort, blood, sweat and tears has gone into building up your operation. Possibly, after family, this is your next most precious thing. And it’s more than just success or money, it’s about the value of people, lives and personal brand. And something that precious should be protected against loss of any form. And that makes insuring your business your most powerful gesture to progress and peace of mind.
Considerations across the board
The current pandemic has hardly improved choices – but what you need to look at is a personalised portfolio of needs and coverage. Business is varied and complicated, but your insurance doesn’t have to be. You begin with looking at the spectrum of elements that must be protected to ensure the smooth, continued operation of your business despite the unexpected.
Your business will
This is of fundamental importance in the event of your death if you are a family run business. Do you have an agreement in place to indicate who will take over your business? Will there be funding available? Is there a buy and sell agreement funded by life assurance? Will you need Keyman insurance – someone designated to run the business on your behalf if you are not able to be there?
These are vital questions that must be covered in your business will. You must consider long term business contingency cover, keyperson cover, and ensure that all business expenses will be covered should you be incapacitated for any length of time or pass away. Always ensure you have a legal advisor on hand to assist you with this very important decision-making.
Employee Benefits liability
Plans related to employee benefits should include coverage for errors in the administration of the benefits programme. Should an employee lose out as a result of any oversight on the part of the employer with regard to health expenses or retirement funding – ie: being underfunded on retirement contributions or left off the health programme – Employee Benefits Liability coverage would pay for the benefits that would have been payable under the plans available. This coverage applies to a wide range of employee benefits including health, life and disability insurance, retirement plans, and other benefits offered by the employer.
Business interruption insurance
Any interruption to your business means loss of money. Avoiding this is sometimes difficult (pandemics aside) because there are always unexpected events – such as your illness preventing you from working, environmental events, expropriation of land, catastrophes like fires, robberies, etc. Business interruption insurance is important. However, it can also be misleading. It is important to get advice on the various types of events that could interrupt your ability to operate, and how to plan for these.
Business liability insurance
If you have customers or staff on your premises, you will need insurance to cover for any eventuality such as a fall or accident that harms a visitor. This is commonly known as general liability insurance. This coverage provides protection against claims that anyone who is harmed on your premises may make – either with regard to employees or the property itself.
However, there are other business risks that require specialised coverage:
- Cyber Liability: loss of data, especially private personal data of clients.
- Employment Practices Liability: allegations of unfair dismissal, sexual harassment, discrimination, and the failure to employ. The policy covers legal fees, damages, and settlements.
- Fiduciary Liability: This insurance is designed to protect the business from claims of mismanagement and the legal liability arising out of their role as fiduciaries. A fiduciary liability policy covers associated legal costs to defend against claims of errors and a breach of fiduciary duty.
- Product Liability: Any company producing products needs to be insured against possible claims a customer might make if injury, illness or death occurs from the use of one of their defective products. Without this type of insurance, the business will have to use its own money.
- Professional Liability: Every business needs this insurance to protect them against claims from clients with regard to negligence, copyright infringement, personal injury, and more. This can include damages caused by things you did and/or things that you should have done.
Workers’ compensation insurance
This is vital to protect your employees from the consequences of injury while on the job. Benefits can be temporary or permanent – the latter often in the case where the worker is no longer capable of performing the job. You need good advice in this area because it is important to ensure that workers are properly cared for in cases of serious accidents.
If you use cars for your business and your operations are fairly dependent on this, then auto insurance is essential. Commercial car insurance will typically carry higher liability limits. If you are driving a personal vehicle for business use, you will need to get an endorsement on your general liability policy that will up the coverage of your car insurance when used for business.
Keeping your brand value intact
Become thoroughly versed in your legal obligations, risks, costs and contracts with regard to business insurance. Keeping your business safe means you will also keep your brand in a good place in people’s perceptions. Be ready to fight through disaster, unpleasant events, awkward moments with confidence, empathy and good cheer.
Part of your fighting spirit is in your brand. You, your company, and your personnel will gain immense support and admiration if you are able to bounce back from adversity with the least disruption to business and continued service to clients. Know yourself and your customers, and you will know exactly what your business needs. Arm yourself with the right information and talk to the right people – and ensure peace of mind.
Empfin Solutions – the team that keeps your team happy
We’re an Old Mutual franchise with our primary focus on advising on and servicing umbrella pension and provident funds. Always striving to be a trusted partner in facilitating financial solutions for organisations and individuals, our dedicated team of fully accredited, experienced professionals have a passion for satisfying customer needs and providing a truly client-centric service.
Find out how you can benefit at: www.empfinsolutions.co.za