Insure the longevity of your small business

Entrepreneurs come in all shapes and sizes. Some are full of big ideas, while others are better at execution. Some take risks, and others are more cautious. There is however one thing that unites all successful entrepreneurs – they took the decision to invest in a future that’s theirs to navigate.

They committed their life savings, took out a second bond on their house, used whatever access to finance they could find to get started, knowing full well that the probability of ruin, particularly in the beginning, is a harsh reality.

Successful entrepreneurs are survivors! They understand that you can never be too prepared and that unexpected events do happen – so it’s better to be safe than sorry.

Clichés aside, successful entrepreneurs don’t overlook business insurance and no doubt have the following precautionary policies in place: 

1. Material Damage

Insurance that covers buildings and their contents for losses caused by fire, storm, hail, lighting and other types of damage covered by the insurance policy.

2. Business Interruption

This type of insurance covers businesses for loss of revenue caused by an event that is covered under the ‘Material Damage’ policy.  For example, a fire may close a factory down for several months. While the factory is not operating, it’s obviously losing income. This policy covers the lost income plus the fixed costs that the business still has to pay like rates, taxes and salaries.

3. Liability Insurance

Many different policies fall within this category. The most common is ‘Public Liability’ insurance. This covers a business owner for property damage or bodily injury suffered by a third party while they are on the business owner’s premises. 

4. Products Liability

This insurance will cover manufacturers, distributors, suppliers, retailers and those who make products available to the public, for the injuries or damage those products may cause through defects of any kind.

5. Employers Liability

This policy covers a business owner’s liability to any employee who, due to the business owner’s negligence, is injured.

6. Directors and Officers Liability

This insurance is designed to indemnify officers and directors against claims for which they are legally liable as a result of an innocent act or error in judgement.  It will protect directors’ personal assets and cover the associated costs of a claim. 

7. Errors & Omissions Insurance

This insurance solution provides cover of up to R50-million to protect businesses against claims by a client for an alleged mistake or omission that has caused financial loss.  If a business owner gives advice to a client, or provides a service to someone, and something goes wrong as a result of the work done or advice provided, the company could be held financially responsible.  Even if the company isn’t ultimately responsible for the loss, the legal costs can stack-up considerably. This can threaten the sustainability of a business. Errors & Omissions is designed to protect and guide SMEs in the event that one of their client’s sues them for a loss or breach resulting from the service or advice they received. 


The content in this article was provided by Ken Van Sweeden (General Manager Professional Liability – Business Insurance, at Telesure Group Services), through the Budget Insurance brand.

For more information, contact:


Tel: 0861 00 19 17

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