Small businesses and directors are exposed to a number of complex risks in the South African market following:
- third party injury or damage caused by employees or products or on the employees premises
- financial losses suffered by third parties because products failed to perform.
- a cyber attack where customer or employee details are stolen.
- the negligent rendering of professional services
- failure of management or directors to fulfil their fiduciary duties
- an accident where pollutants are released suddenly or even gradually into the environment
- a labour court or CCMA action brought by a former employee
- spread of fire to a neighbours property
- loss of important documents
- alleged copyright infringement
- injuries to employees leading to death or disability
- expensive product recalls where a dangerous product has made it onto the shelves or into the homes of consumers
Of course there is a range of insurance policies that can cover these events such as
- Broadform Liability (including product liability and inefficacy)
- Errors and Omissions
- Directors and Officers
- Gradual Pollution
- Employment Practices
- Cyber Liability
- Recall and Guarantee
- Personal Accident
The problem for SME's is that:
- At least 6 separate policies are needed to provide elements of cover
- policies are generally designed for big corporates and are very complex
- there are at least 40 to 50 pages of proposal forms to complete
- premiums and deductibles are out of the reach of SME's
- Often 2 or 3 insurers will have to get involved.
As a broker it can be very daunting putting together an insurance program that covers all of these bases. It is for this reason that SHA has released the Evolution Liability Policy aimed specifically at small to medium sized enterprises in South Africa. All the above covers, and more, are contained in one wording and there are no paper proposal forms that need to be completed.
Pricing designed for small businesses-----One policy instead of six-----No proposal forms------Instant quotes 24/7 Online------Policy documents issued in minutes-----Video explanations of complex cover------Records of advice for brokers-------CPD points
The insurance product is delivered exclusively through SHA's Pocket Underwriter system to licensed intermediaries who have an agency with SHA.