Businesses urged to manage civil unrest risks following Hout Bay protests
The violent protest action that has flared up in Hout Bay in the Western Cape over service delivery frustrations in recent days, highlights the importance of having the right insurance cover in place to safeguard against unforeseen and sporadic risks.
This is according to Annelie Smith, Corporate Executive at RBS (Risk Benefit Solutions), an authorised financial services provider, who says that it has become increasingly important for South African businesses to be prepared for the possibility of protests. “Violent protests have become more frequent in South Africa, and business owners need to ensure that they are covered for the various risks associated with it, especially damage to property and loss of income.”
Smith says that businesses must protect themselves from protest-related risks by making use of the cover provided by the South African Special Risk Insurance Association (Sasria). “Sasria is a state-owned short-term insurance company with a mandate to provide specialised risk cover for material damage, as well as business interruption caused by riots, strikes, terrorism, civil commotion and public disorder to corporate, commercial and individual policyholders.”
“Business owners are sometimes under the impression that they are covered for losses resulting from violent protests, by their short-term insurance policies. These policies however only cover businesses for catastrophic perils like fires, storms, earthquakes and other risks. Civil unrest protection is often excluded from these policies and is offered, rather, as an optional add-on,” she says.
Businesses and professionals, especially those in high-risk protest areas, are therefore strongly advised to consult their insurance providers to ensure that their provisions are correctly structured to include Sasria cover, explains Smith.
Smith says that the trigger for Sasria to cover an instance is based on the direct damage to a business’ property as a result of a protest or riot. “For example, in the unfortunate event that a business’ premises are set alight by protesters, Sasria would cover the damage to the property, as well as the on-going costs requiring payment during the period, such as rates and taxes, loans and hire purchase agreements. However, should a protest take place near the property, resulting in the business ‘shutting down’ its operations temporarily and sending staff home as a result of intimidation, there is no direct damage to the property. Therefore, this instance will not be covered by either the property or the Sasria policies, despite the business suffering a financial loss as a result of the business being interrupted.
“Given the increase in protests and public unrest across South Africa in recent months; protests, strikes and riots need to become a permanent part of a business’ risk management plan,” concludes Smith.
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Safety and Safe Driving in Areas of Public Violence
