Key Aspects in Insurance that SMEs Should Consider.

The 2020 pandemic has changed, if not completely overhauled the structure in families, communities and countries. It goes without saying that most economies and businesses have had to adjust how they conduct business post the Covid19 era. It is therefore imperative that we look at some key issues/points that Small and Medium Enterprises (SMEs) need to be conscious of in 2023, with regards to their insurance covers. Insurance plays a key role in the sustenance of any business.

Below we highlight key aspects in insurance that we as Maksure Risk Solutions advice our clients to consider.

Power Surge cover

Recently, Eskom Chairperson Mpho Makwena declared that South Africa will require “some level of” permanent load shedding at stage 2 or stage 3 for at least two years so that critical maintenance can be done on power stations. This means loadshedding is here to stay. We have inevitably seen an increase over the last year of claims related to power surge where electrical goods are damaged. Most insurance covers do not cover damages of this nature on the conventional cover but require power surge as an extension. We advise clients to look at their policy wording and ensure they are adequately covered against incidents caused by the loadshedding.

Cyber insurance

Increasingly, in this technologically advancing era, there is need to consider cyber insurance for SMEs. This is an emerging risk and we have seen a spike in incidents moreso, as many businesses now run a hybrid model of working. Some residential networks are not secure and are easily prone to hacking. In other instances, staff will work from other locations not necessarily their resident office premises and this exposes them to cyber hacks. A lot of insurance companies now offer cyber insurance as a stand alone cover and we encourage our clients to take this cover in case they get exposed to cyber-crime.

Theft Cover

The struggling economy has also led to an increase in many theft incidences. Poverty, high unemployment and economic inequality gaps mean more and more people resort to crime as a way of living. Businesses should ensure that they have theft cover for their operations. With the continual sophistication of how thieves are now operating, it is key to also include unforceable entry as an extension as most covers insist on forceable or violent entry as a prerequisite. We therefore encourage clients to always have this cover in place for their peace of mind.

Vehicle cover

The sustenance of most businesses relies on the availability of their vehicles. Businesses therefore, need to look at ensuring there is cover for their vehicles. It is critical to ensure that those with a fleet can look at fleet covers as they can save on premiums. We always encourage on comprehensive covers but if there are any vehicles not in use, we recommend that they be put on third party, fire and theft cover so as to also save on premiums.

New additions

During the year, numerous purchases are made by companies to facilitate smooth operations. We implore SMEs that whenever they buy any office assets, machinery, equipment, gadgets and the likes, they must get in touch with their broker or insurance company to include these in the cover. What is prevalent is that a lot of businesses are investing in generators and solar equipment as back up due to the continuous power cuts; businesses must not forget to update their policies by including these new additions.

“It is crucial to be mindful of these key issues when considering or updating business and commercial insurance policies, and thus avoid surprises especially during the claims process”, adds Knight Mawere, Chief Operations Officer: Europe, Asia & Africa.

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About Maksure Risk Solutions

Maksure Risk Solutions is an Afro-Global independent specialist insurance and reinsurance broker with business footprint in Africa, Asia, East & Western Europe, South America and the Caribbean. We provide innovative and tailor-made risk solutions in Insurance and Reinsurance as well as Risk Financing and Actuarial Consulting geared towards capital management and strengthening our client’s balance sheet. Maksure is also one of the major players in Captive Management (Establishment & Management) in South Africa, Mauritius, Bermuda and various other jurisdictions. We have access into the Lloyds of London with a deep understanding of African markets. Our global nature ensures that our clients access quality capacity as well as some of the world’s latest thinking and solutions.