BUSINESS ASSURANCE

BUSINESS ASSURANCE

When it comes to owning you're own business you just cannot afford to take any risks! Being in business is risky enough so you don't want the extra stress and strain of not being insured correctly. Business insurance consists of two separate and distinctive arms. Business Assurance & Commercial Insurance. Business Assurance deals with insuring the lives of valuable persons within the business. Here are a few areas you can look at covering.

  • Buy and sell agreements between owners to allow easy exit from the business upon death or disability
  • Key person assurance to cover the costs and losses suffered to the business resulting from the death or disability of a vital staff member
  • Deferred compensation plans as an alternative to a salary increase for those already paying too much tax, who are close to retirement, and whose skills cannot be lost to the company right now
  • Preferred compensation to reward employees for loyalty to the business and encourage them to stay for at least 5 years
  • Providing restraint of trade payments to employees that could leave the business and set up shop as competition
  • Loan account cover to provide for loans made to the company by directors or the other way around
  • Business contingency plans to pay off debts when a director has signed as surety for a loan and the business does not have the means to settle the loan
  • Replacement of fixed assets. Let's face it, we all get old! Why finance a new asset in five years time (and pay the bank interest) when you can start investing now and buy it for cash then?

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Business Insurance

Business Interruption Insurance

by Lawrence

If you’re involved in any type of business with fixed monthly overheads…then business interruption insurance should grab your attention. The show must go on… Never before have the lyrics of Queen (the rock music group) had so much meaning! Imagine for a moment owning a large industrial concern with 120 staff. One day a fire breaks out at your premises and the entire factory is razed to the ground. Suddenly you’re sitting with: A massive salary bill, Vehicle payments that need to be made, Water and electricity accounts that need to be paid (never mind your Telkom telephone bill) …and no money coming in with which to pay them all! So what would you do? Dismiss all your staff and declare bankruptcy? Well, if you’re a forward thinking business owner you would have made certain that you had business interruption – also known as ‘loss of profits‘ or ‘consequential loss ‘ – cover in place. The purpose of business interruption cover is simple…it provides indemnity against: Fixed costs – those expenses that continue regardless of your loss of turnover. Also known as ‘standing charges’. Net profit – The net profit that would have been earned had the business not been ...

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Tagged as: Business Insurance, Commercial Insurance, Short Term Insurance

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Office Contents Insurance

by Lawrence

So, maybe your business is service based which means you only have offices…or maybe you own a factory with adjacent offices for your accounting and sales staff? And what if you’re an attorney or accountant with trust or mortgage deeds in your possession? Whatever your situation you need office contents insurance! What am I insured for under the office contents section? The office contents section provides indemnity against five different risks. The risks in question are: Loss or damage to contents caused by one of the insured perils Rent payable by you as tenant while the premises are uninhabitable as a result of one of the insured perils. This is limited to 25% of the sum insured. Loss or damage to documents kept at the office (Important for attorneys!) by one of the insured perils. This is limited to the cost of restoring or replacing these documents. Legal liability you might face as a result of loss or damage to important documents in your possession at the time of the loss The increased cost of working in order to maintain the normal operation of the business after loss or damage to the contents by one of the insured perils. This is ...

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Tagged as: Business Insurance, Commercial Insurance, Short Term Insurance

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Buildings Combined Insurance

by Lawrence

In my previous post we discussed Fire Insurance or as it is commonly known – Property Insurance. If you can recall we mentioned that under the fire section you can insure:  Your buildings Your machinery And your stock in trade So why would you need buildings combined insurance? The truth is that you wouldn’t normally. However, if you make your living as a landlord, then ‘buildings combined’ is an ideal way to insure your building and the various risks you face. So what are the benefits for a landlord? There are three main areas of risk which are provided for with this type of insurance. Damage to buildings, outbuildings fixtures and fittings walls, gates, and fences paved or tarred roads and driveways parking areas sports or recreational structures Loss of rent as a result of the property being so damaged by one of the perils mentioned below that the premises becomes untenantable. Loss of rent is limited to 25% of the sum insured. In other words, if your building is insured for R1, 000, 000 (and that the replacement value is also R1, 000, 000!…Don’t say I didn’t warn you about ‘averaging‘) then your cover under this section is limited to R250, 000! ...

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Tagged as: Business Insurance, Commercial Insurance, Short Term Insurance

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Fire Insurance

by Lawrence

For most businesses, when it comes to insuring against all the potential risks you face, fire insurance forms the foundation. Now I can almost hear you saying: “Fire insurance…Why fire insurance? I’m more concerned about theft cover than fire!” So let me explain… Fire insurance – otherwise known as ‘property’ insurance – indemnifies you in the event of an insured event happening to your buildings, your machinery, and your stock in trade. What is an insured event? Many clients believe that insurance covers for all eventualities where a loss occurs. Here’s an example… Just the other day one of our clients wanted to claim because a staff member ‘stole’ a very expensive set of tools from the workplace. It took some explaining for him to realise that employee theft is not an insured event…in fact, theft itself is not an insured event unless specific cover is taken out for it! So what exactly are you covered for? Under the fire section there are three main risks (or perils) covered: Fire Lightning or thunderbolt Explosion  In addition to the basic perils a number of additional perils are added which include: Earthquake damage Storm, wind, water, hail, or snow (normally with a ...

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Tagged as: Business Insurance, Commercial Insurance, Short Term Insurance

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