We're wrapping up this Tuesday Tip series with two more essential types of cover every SME in South Africa should consider.
To recap, over the past few weeks, we looked at why business insurance is essential for your SME and why liability and property insurance form the foundation of business protection. This week, we’re tackling two more essential types of cover, Employee Coverage and Business Interruption Insurance. These aren’t just safety nets, they’re lifelines when the unexpected happens.
Employee coverage (Workers’ Compensation / Employee Benefits Insurance)
What it is: Your team is your business’s most valuable asset. Employee coverage ensures they’re protected in the event of workplace injuries, illness, or death, while also shielding your business from costly legal claims.
Why it matters: In South Africa, while the Compensation for Occupational Injuries and Diseases Act (COIDA) provides a state-managed solution, many SMEs choose additional private insurance for more comprehensive coverage or to offer extended benefits as part of a competitive employment package.
Some popular providers:
Discovery Life - Group risk and health cover.
Sanlam - Group risk, disability and retirement.
Old Mutual - Disability, death, and funeral group schemes
Momentum - Income protection and group life plans
Business Interruption Insurance
What it is: Even with great planning, disasters strike. This cover replaces lost income when your business operations are disrupted - whether due to fire, flood, or even load shedding (if covered). It’s the difference between bouncing back or closing down. It's designed to put your business in the same financial position it would have been in if the loss had not occurred.
Why it matters: Many SMEs operate on tight margins. A few weeks of closure can be catastrophic. This insurance helps keep the business afloat until normal operations resume.
Some popular providers:
OUTsurance - Business interruption under standard business cover.
Santam Insurance - Flexible interruption policies with optional add-ons.
Hollard Insurance - Gross profit and revenue loss cover.
iTOO Special Risk (underwritten by Hollard) – Advanced interruption and cyber event cover.
Key Takeaway: You can't prevent every crisis, but you can prepare for it. The right insurance helps you protect your team and your income, so your business can survive the setbacks and stay on track for growth.
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