Every year, your contract with your short-term insurance company is automatically renewed. More often than not, your business insurance contract simply ‘ticks over’ without your having checked whether your business has either too much or too little cover in place.
Each year, the ombudsman for short-term insurance, Dennis Jooste, warns consumers and business owners to review their insurance policies. At Santam, we think ‘spring cleaning’ your business insurance policy may even help you save some money in the long run.
Adjust the amount your business contents is insured for
The main reason for reviewing your policy is to make sure that your business premises and the contents of your office(s) are insured for the right amount – this is what insurers call the ‘sum insured’. Over the course of the past year, you may have bought new equipment including laptops and a more enhanced telephony system all of which means you will have needed to adjust the all risks or electronic equipment section of your business insurance, ensuring you account for inflation as well as the rand’s exchange rate.
Your business premises
If you’ve enhanced the value of your business premises by upgrading your offices or enhancing your security measures, you need to review the amount your building is insured for. Your offices (its structure) and your office equipment (the contents of your office) must be insured for its replacement value that is, what it will cost you, at the time of a claim, to replace the building or equipment with similar, new structures or items.
Your business vehicles
Your business vehicles should be insured at a “reasonable market value”. Reasonable market value is the retail value, which is what a dealer would sell it for, considering its age, the mileage, the condition of the car and any extras such as a tracker. If you’re wondering what your business vehicles are worth, Santam has put together a car calculator to help you work out the reasonable market value of your car.
Reasons to insure with Santam
Santam is South Africa’s largest short-term insurer, insuring risks of over R4 trillion. We’ve paid out 99% of all claims made in the past year. We also offer the following cover and benefits:
- Comprehensive cover for your business; and
- Standard excess for vehicles and buildings.
Santam also automatically increases your business’ sum insured once a year on renewal on the Fire Section, Buildings and Office Contents with 10% to ensure we keep track of inflation.
Request a quote
Speak to your broker or call us on 0860 444 444 for more information about commercial insurance.