Fempreneur? These are the 4 types of insurance you need for your business
Life is easier when you mind your own business. This may be true in life but as an entrepreneur, minding your own business is tough. It takes a whole lot of grit to navigate the minefields of She-EO-ship but once you do, it will be well worth the effort.
To safeguard the fruits of their hard labour, many entrepreneurs opt for the safety net of business insurance because no one can afford to watch their hard-earned investment fail due to unforeseen events.
The unexpected can happen at any time. From natural disasters to lawsuits, these events can threaten the survival of a business. More often than not, it’s not a matter of whether something will happen but when it will happen.
1st for Women Business Insurance understands this and has developed tailor-made insurance solutions for small to medium female-owned businesses.
The affordable yet comprehensive coverage meets the unique needs of women and includes a series of valued added benefits to help business owners grow and thrive.
A few examples of these benefits include 24/7 telephonic support from professional advisors, mentors and specialists who are experts in all the key business areas like technology, HR and operations; plumbing and electrical call-outs; logo and website design and marketing support, as well as point-to-point vehicle transfers – ideal for offsite meetings or round trips to the airport.
Through business legal cover, 1st for Women business insurance customers receive unlimited access to a qualified attorney who specialises in legal matters relating to businesses, including support on labour matters and contracts.
The service extends to the mediation of legal cases, as well as cover of up to R1 million against litigation costs incurred in court.
While each business is as unique as its owner, there are 4 types of insurance that every fempreneur should consider:
First up is business property insurance to cover your assets against various losses that result from natural and man-made causes.
- Check the policy to determine what assets and events it covers, and purchase additional coverage if you feel it is necessary.
- You may want to cover any building you own and its contents (e.g., furniture, office equipment, inventory, and supplies).
- If you rent space, you may still want to purchase property insurance; your landlord’s building insurance will not cover your business possessions. It is always a good idea for multi-tenanted environments, for example, if your business is located in a shopping mall.
- If you run your business from your home, you should consider purchasing separate business property insurance or have your homeowner’s policy extended to include the business activity carried out at your home. In most cases, your homeowner’s policy won’t cover the use of your home for business purposes unless you specifically request the cover and have your policy endorsed to reflect the additional risk.
The second is public liability cover to protect against lawsuits that could arise if the services or products you provide injure or harm your customers or their property.
- A client’s car could be damaged while parked in on your property. Alternatively, a product supplied by you could cause injury to your customer.
- Liability insurance pays the cost of these damages, as well as attorney fees.
- A similar type of protection for professionals is called Errors & Omissions insurance which is needed by anyone who charges a fee for rendering services such as design, advice, guidance, assessment or counselling, for example.
Number three – if you have employees, you are required to make contributions to the compensation fund under The Compensation of Occupational Injuries and Diseases Act (COIDA) which provides compensation to employees for occupational injury and disease.
South African law determines the maximum number of workers you may employ to be excluded from mandatory coverage, and the types of employees (e.g., independent contractors) that you may exclude from coverage.
Last but not least is Directors & Officers insurance which protects you against flawed business decisions.
According to a study, women are better decision makers than their male counterparts and this makes them better corporate leaders. But the reality is that even the most prudent businesswomen, with the best intentions, can make a mistake.
Thanks to the ever changing legislative landscape in South Africa, the director or officer who made that decision could be held personally responsible for the consequences of their oversight.
Personal responsibility for an honest error in judgement you may wonder?
Yes! If a shareholder of a company sues the Board of Directors or Officers for mismanagement or negligence, the directors and officers can be held personally responsible. This means that their personal assets – their house, their car, their bank account – could be at risk.
Directors & Officers Liability Insurance protects directors and officers against claims that they are legally liable for as a result of an innocent act or error in judgement.
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