The economy is showing no signs of a fast recovery and most South Africans and their businesses remain under pressure. The latest petrol price hikes are adding further fuel to the fire and business owners are forced to crunch the numbers even further than they would normally do…
There are many factors beyond our control – and there is little we can do about the petrol price, the electricity tariffs etc. We can however reduce unnecessary travels or time on the road and the amount of electricity we consume.
We can also pay much closer attention to our business expenses such as banking costs and the costs to insure our businesses.
Do we get what we pay for and can we still get the same by paying less?
There has been significant growth in the direct insurance industry as more individuals have discovered the benefits of cutting out the middleman. Businesses can now do the same – and it is not only the small restaurant in the corner that may benefit. Cover is fast expanding to more business sectors and bigger businesses.
Would my business benefit?
I approached OUTsurance with a few questions to gain a better understanding of direct business insurance and the businesses covered. I believe it is important to know which types of businesses are covered and whether there might be limitations:
Which businesses are best suited for direct insurance?
- We currently handle all types of businesses, with a focus on small to medium businesses
Does Outsurance cover all types of management structures – such as sole ownership, partnership, CC, private company and public company?
Are there limits to the size of the business that Outsurance will insure based on factors such as size, turnover, location or number of employees?
- The only limit applies to the total value of the insured assets (vehicles, contents, plant, machinery and stock) which is capped at R200m for 1 location.
- We do not cover complex, large corporate-type risks such as:
– Petrochemical risks involving petroleum, oil and gas
– Risks where biological, chemical, radioactive, or nuclear pollution or contamination or explosion risk exists
– Any offshore risk including drilling rigs
– Marine transport
– Rolling stock
– Onshore drilling rigs involving petroleum, oil and gas
Are all areas in South Africa able to be covered – would there be assessors available in every town across the country?
- Yes, we offer cover across SA.
Are there minimum or maximum premiums to qualify for direct insurance via Outsurance?
Which industries would not be able to be covered by Outsurance?
- Petrochemical risks involving petroleum, oil and gas
- Risks where biological, chemical, radioactive, or nuclear pollution or contamination or explosion risk exists
- Any offshore risk including drilling rigs
- Marine transport
- Rolling stock
- Onshore drilling rigs involving petroleum, oil and gas
What would be the reason for Outsurance not covering a business such as farming business?
When Business OUTsurance was launched farming businesses was not part of our target market. This is also specialised cover and we did not want to get involved in something we did not understand properly. We can cover most of the assets belonging to a farming business but we don’t cover crops and livestock.
We have realised that a need for this exist and we are currently developing our own specialised farming product.