Cash business? Make sure you have the right insurance cover

Cash business? Make sure you have the right insurance cover

Money is king” is a saying that still rings true especially for small businesses. But having a lot of cash on your premises increases your risk of armed robberies and burglaries.  There are however, a number of ways in which you can protect yourself.

We recommend that small businesses that work with large amounts of cash regularly minimise the amount of cash in their cash registers. Says Shehnaz Somers, head of commercial underwriting at Santam: “It’s good practice to empty your cash registers regularly and keep the excess money in a secure safe.” The South African Bureau of Standards (SABS) has a system in place to certify safes.  They allocate a grading ranging from 1 to 5; with 5 ADC being the safe that provides the best protection.  “Insurance companies provide cover for money in safes according to the grading.  For example, they may provide cover of up to R5 000 for a category 1 safe and up to R175 000 for a category 3 safe,” says Shehnaz.

“Don’t keep unnecessary cash at your premises and bank often.  Plan your trips to the bank and don’t go to the bank at the same time every day; remember to vary your visits.  Shehnaz recommends that business owners carefully plan their routes to be as direct and uninterrupted as possible.  “Don’t stop for coffee if you still have all the money in the car and having two employees take the money to the bank can deter would-be robbers,” she says. She says small businesses should also consider professional cash in transit companies for regular deposits of large amounts of cash.

“Always inform your insurance company if you have money collectors or provide a cash-on-delivery (COD) service. Having a safe installed in the vehicle will help you protect your money,” says Shehnaz.

According to Shehnaz, businesses may still be exposed even after they’ve implemented all the above security measures. “Protect your business by taking out insurance with a reputable insurance company and make sure you insure for the maximum amount of cash you have at any one time.  Some businesses are seasonal, for example over festive season and insurance companies allow for seasonal limits which means you don’t pay a premium on the higher limits for the whole year, but only for the periods in which you have more cash at hand.”

Visit our home advice page for more useful tips.

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