Is Your Insurance Still Up To Task?

Many SMEs have had to make significant changes to their business models. Here's a 'refresher' on the types of business insurance to consider whether your coverage is sufficient to mitigate your risks.

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When you’re in the thick of running your business and tending to day-to-day work responsibilities, it’s easy to leave aspects such as risk and insurance simply to ‘tick’ over, but that could leave you compromised as your business evolves and the exposures in your environment and industry change.

Aon South Africa share some insights into some of the key risks that SMEs face, and unpacks the trends and insurance solutions that businesses should have on their radar...

1 Has the nature of your business done a 360-pivot as a result of the pandemic?

Many businesses were forced to change their business models, product offerings and premises as a result of the economic fallout of the pandemic. These changes hold significant implications in terms of the nature of the risk that your insurer initially agreed to cover, in relation to what the nature of risk may be now.

Have you changed business premises, or are you working from home? Where are you storing stock and what security measures are in place? Has your restaurant been changed to a catering operation? Have you changed your manufacturing processes or the nature of products being produced? Are you sub-letting your premises? Are you doing professional consulting work and charging clients for your advice or expertise?

Your insurance cover could be compromised or entirely negated if the profile of the risk initially accepted by an insurer at inception of the policy is materially altered, without notice and updating the risk mitigation measures that may be required by the insurer.