The Most Common Business Insurance Claims

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The Most Common Business Insurance Claims

There is real value in making sure that you not only have business insurance, but also that it is kept up to date and relevant. Business insurance has saved many companies from being in a sticky situation, especially small businesses, since most businesses in South Africa are classified as such. If you are not entirely convinced, then here are the top most common insurance claims we see for local businesses, all of which are very good reasons to have business insurance as your safety net.

  1. Theft

Most businesses get affected by this, especially in retail and shop environments. Where there is movable items, theft will generally follow. Claims have named employees and customers alike as the culprits and as such, the business can lose income and merchandise on a regular basis. Doing thorough background check on candidates before they become your employees is advisable. Another measure business owners like to take is installing cameras and alarm systems on the premises. Even though this may not completely prevent thievery, they will definitely deter potential burglars.

  1. Reputational Harm

This is the one insurance claim that rakes in the largest sums of money. Claims can go upward of hundreds of thousands rands depending on the case and the lawyers that are involved. Currently, social media is playing a huge role in everyone’s lives and often people do not consider the things they say about a business or their experiences there. Public criticising has led to numerous business-slandering claims and can bring forth huge financial losses for something that could have been largely avoided.

  1. Product Liability

When a product does not perform the way, it was advertised under normal conditions or as recommended by the packaging, it may be due to poor product testing or faulty manufacturing. This is another business insurance claim that can involve large sums of money, but is also completely preventable with a bit of due diligence. Regular testing and spot-checking is a great way to prevent such claims.

  1. Fire Damage

There are a number of things a business owner can put into place to prevent or contain fires, but claims for damage, due to fire, is more common and costly than most businesses appreciate. Whether the fire originated on your premises or was due to a neighbouring building that has caught fire, the potential for this kind of damage remains very big and is one of the most loved reasons for owners to get business insurance.

  1. Vehicle Accidents

This is especially important if you run a fleet or delivery service or have any company vehicles that are being driven by employees. The size of the claims will differ on a case to case basis, but can also run a hole into your pocket if the accident was more serious. This type of cover will also allow you to proceed with business as normal as soon as possible. Always encourage good driver behaviour amongst your staff to help eliminate small bumps and scratches.

KIB offers personalised short term insurance packages to business owners in South Africa, whether the company is big or small. KIB understands the importance of dealing with our customers’ cases in a swift and discreet manner, so that our customers may be confident that they are fully protected and in good hands. Contact us today to speak to one of our knowledgeable consultants and get a quote that will suit your business and your budget.

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