None of us know what the future holds, especially when it comes to the world of business. Life events like COVID19 left many businesses with major cashflow issues due to the interruptions made to their business. Other disasters such as a fire, flood or similar could cause your business to lose income generating capacity. When you have bills to settle and staff to pay, this can be a major issue.
But how does business interruption insurance work in South Africa? Is it worth having? What brokers have experience in this sector?
What is Business Interruption Insurance?
As the name suggest, business interruption insurance covers your business in the event that your income gets interrupted. This means that you can rest assured knowing that your income is covered.
Some key elements of most business interruption insurance policies:
- Business interruption insurance is insurance coverage that replaces income lost in the event that business is halted due to direct physical loss or damage, such as might be caused by a fire or a natural disaster.
- Business interruption insurance can also covers operating expenses, a move to a temporary location if necessary, payroll, taxes, and loan payments. This does vary depending on your policy.
- Some business interruption insurance does not pay out policy holders if the business is closed due to a worldwide virus or pandemic. Even some all-risk insurance plans have specific exclusions for losses due to viruses or bacteria. It is vital to check your policy to see if your policy includes this.
What Factors Influence the Cost of Business Interruption Insurance?
There are a number of factors that will influence the cost of your business interruption insurance. When looking into taking out a business interruption insurance policy, your broker will work through these elements with you to assist you in getting the right cover for your needs. Some of these factors include:
- Your Businesses Turnover
- The Amount of Employees
- Your Business Operations
- The Industry Your Business Operates in
What Brokers can You Speak to?
Speaking to a broker who understands business is crucial in getting the right insurance cover for your needs. Every business is different and has different requirements when it comes to the amount, type and cover of insurance. What you need is a business insurance specialist.
EU Brokers has over 22 years of experience helping businesses to get the best insurance cover to suit their needs. The brokerage works with all the major insurers including Hollard, Discovery, Bryte, Old Mutual and Auto & General.