The end of the year festive season is fast approaching, a traditionally busier and riskier period for most businesses. To start the New Year without incurring unnecessary financial losses, often the result of being inadequately insured or failing to guard against heightened, but foreseeable risks during this time it is important to understand your exposure and responsibility as an owner in this regard, this is according to David Wedderburn, Regional Manager Corporate and Business Insurance Division at Standard Bank Insurance Brokers.
Wedderburn shares the following tips to ensure your business is protected:
- Review your policy to understand the risks for which you are covered is the first step to making sure that you are adequately protected during the holidays. Not all ‘comprehensive’ insurance policies are the same, so it is vital to understand your policy’s terms and conditions not only to mitigate your risk, but also to be aware of any areas where cover may be insufficient.
- The end-of-year rush often results in businesses, large and small, having to increase their stock levels to meet increased demand. In this instance, adjustments to insured stock values and disclosure of any additional storage locations may need to be considered, since the sum for which it was initially insured may not be sufficient to cover the latest replacement value.
- Most businesses haven’t considered the effect our fluctuating currency value has on their insured imported stock values. The recent weakening of the Rand against the US Dollar may result not only in the under-insurance of stock values, but also the under-insurance of electronic equipment, for example, and business interruption.
- Security is of great concern over the festive period, since certain businesses may be left vacant for a few days or weeks while staff and owners take leave, increasing the risk of burglary. Businesses must take the necessary security measures in accordance with their insurance requirements, both at the primary premises and at any additional ones.
- In some parts of South Africa, December falls in the rainy season, so, to avoid flooding or water damage, business owners are advised to regularly clear all gutters and storm water drains.
