You are going to be redirected to the Retirement Fund Benefits secure site. This should only take a moment.
Comprehensive, third party, fire and theft or third party only car insurance. Premium based on risk profile.
Your business is covered against events that could befall your property, vehicles, staff and visitors, but how prepared are you for new-millennium threats? Here are four types of insurance you might need.
Cybercrime might sound like science fiction until you consider that 31% of the respondents to PwC’s 2018 Global Economic Crime and Fraud survey indicated that they’d been hit by cybercrime in the past.
All a cyber attacker needs is an internet connection and downloadable software tools to bring a business to its knees financially. A common tool is ransomware, which appears on Europol’s list of the biggest malware threats to business worldwide. It is malicious software designed to block access to computers until a ransom has been paid, hence the name.
The trouble with ransomware and other cyber attacks is that they can cause lengthy disruptions and ultimately be financially crippling. How smoothly would your business run without access to its systems? Are there vital files without which you cannot function?
For reasons like these, there is a strong argument for insurance against cyber attacks to keep your business ticking over in the event of a breach. Do your homework, though, as cover differs between insurers and not all offer cover against cyber attacks.
An extension of cybercrime which could land your business in serious legal hot water is a data breach. If you store sensitive, private information about staff or clients on computers or servers, you are legally bound by the Protection of Personal Information Act (POPI) to do everything necessary to protect it, as this data is deemed to be ‘precious goods’. This applies to paper records, too.
In 2017, South Africa was hit by the biggest data breach to date when the names, identity numbers, income, gender, employment history, contact numbers and even home addresses of 31 million South Africans (about half the population) were compromised.
A data breach could happen in a business of any size through malware such as Heartbleed or Target. Should your business be breached and found guilty of negligence, you can face hefty fines and a criminal sentence. The associated costs could be fatal.
Data-breach insurance helps to limit the financial damage. Speak to your financial adviser to find out whether you need it and what your options are.
With load shedding back in our lives, how can you protect your business against it? While business-interruption insurance, also called business-income insurance, is designed to safeguard against financial losses after natural events such as floods or earthquakes have interrupted a business, electricity blackouts are not covered when they result from the withholding of power by a provider (in this case Eskom). You are only covered for outages that result from such events as fire or a lightning strike.
What you can do, however, is to protect sensitive equipment with surge arrestors, and ensure that you are covered for surge and dip damage through your insurance schedule. Your ‘building insurance’ will typically cover immovable plant machinery and alarm systems, your ‘building contents insurance’ will cover moveable machinery, refrigeration and such like; and the ‘electronic equipment’ section of your insurance schedule will cover computers.
In the wake of a turbulent few years marked by service-delivery and student protests as well as labour strikes, certain sectors are insure against damage to property or vehicles caused during strikes or protests.
One solution is SASRIA, a state-owned short-term insurance option that is, as it website says, ‘the only short-term insurer that provides special risk cover to all individuals and businesses that own assets in South Africa’.
It protects against risks such as civil unrest, public disorder, strikes, riots and terrorism, and it makes South Africa one of the few countries in the world where such insurance is available at affordable premiums.
SASRIA is sold through Old Mutual Iwyze and other insurers, either as an automatic inclusion to an existing insurance product or as an add-on, so check with your financial adviser whether you have it.
Insurers consider various factors when deciding to insure a large commercial building. ‘The steps taken in the underwriting stage depend on the type of building and the occupancy. For example, we insist on stringent fire-detection and fire-suppression capabilities for an office building that is taller than eight stories,’ says Willie van Graan, Head: Corporate Property and Structuring at Old Mutual Insure. Common risk-mitigation strategies include dedicated fire-detection and suppression systems (designed to ASIB or NFPA standards); the provision of adequate water on site; and the necessary equipment to pump water to the top floor.
Insurers take commercial-building risks extremely seriously and will send a risk engineer to a large commercial sites to complete a risk survey. This will indicate the required level of protection and any shortcomings in existing systems and/or prerequisite maintenance. The responsibility to install the protection systems indicated in this survey – and to maintain and keep them in working condition – typically falls upon the building owner but this responsibility can be transferred to the tenant, depending on the type of lease.
Insurers, insurance brokers and risk managers do consider the surrounding municipal infrastructure when pricing risk, but to ensure optimal risk mitigation, providing the required fire-fighting equipment and mechanisms lies with the building owner or tenant. ‘Sprinkler systems cannot work effectively if the hydraulic requirements are not met and must therefore be tested and certified by an approved competent authority annually,’ says Van Graan.’“If the pressure is insufficient, the building owner will have to augment the supply by, for example, installing fire-water tanks and pumps.’
Fire safety aside, it is unlikely that an insurer will cover a commercial building if the necessary safety certificates are not in place. Van Graan notes that Old Mutual Insure would cover a building unless it has fully complied with all legal requirements, including a valid occupation certificate, an electrical certificate of compliance and the minimum level of protection for the type of building as identified during the risk survey. The building owner must ensure compliance with the above-mentioned safety requirements.
The relationship between a building owner and the tenants introduces some complexity when it comes to insurance. It is common practice for the building owner to take out cover for the building while the tenant will take out insurance on the contents and perhaps business interruption. What’s more, these policies probably would be written by different insurers. Following a fire loss, each insured will be therefore be compensated in line with their policy agreement.
Contact Old Mutual Insure for an obligation-free insurance quote by calling us on 0860 22 55 63, requesting a call back, or speaking to your broker.