As SMEs step into this exciting season of opportunity, we encourage all business owners to take stock of their insurance, update their policies where necessary, and make sure they are truly summer-ready.
Summer is around the corner, which means South African small and medium-sized enterprises (SMEs) are gearing up for one of the busiest trading periods on the calendar. This year, however, the stakes are even higher, with South Africa hosting the G20 Summit – a global event that is expected to generate over R1.2 billion in direct tourism revenue putting local hotels, guesthouses, restaurants, and transport providers in the spotlight.
Local SMEs face both increased opportunity and risk. Seasonal demand spikes bring increased pressure on SMEs to perform seamlessly. A single unexpected event – whether it’s theft, a vehicle breakdown, or a fire – could threaten continuity at the very moment when opportunities are greatest.
One of the first areas SMEs should review is their physical assets. It’s important to ensure that your policy offers services on site to sort out any problems, as well as security on your premises after a loss.
For businesses that rely heavily on portable tools and equipment – such as those in construction, events, or catering – business all risk insurance offers protection for valuable moveables, even when taken off-site. Summer brings more outdoor events, more travel, and more exposure to risks beyond your premises. This makes all-risk cover particularly relevant.
Logistics and mobility are at the heart of many SME operations, especially in peak trading months. Business vehicles and fleet insurance cover everything from speedy scooters and daily delivery vans to long distance trucks, ensuring these are sufficiently covered for accidents, theft, and damage. Businesses that transport goods should also consider goods in transit insurance, which safeguards items while being delivered to or collected from business premises.
Business interruption insurance protects SMEs against the financial losses that arise when operations are halted. This includes cover for fixed expenses and the loss of operating profit while the business gets back on its feet.
Professional liability insurance protects service-based SMEs against claims relating to errors, omissions, or defamation, while staff dishonesty insurance, also known as fidelity insurance, provides peace of mind against losses caused by employee theft or fraud.
As SMEs step into this exciting season of opportunity, we encourage all business owners to take stock of their insurance, update their policies where necessary, and make sure they are truly summer-ready.
