Mitigate risk by insuring you small business
November 2010The festive season is upon us, and although the idea of contemplating crime is unappealing, the facts show that commercial crime increased by a dramatic 295.3% between 2003/04 and 2009/10.
"Unfortunately, small to medium-sized businesses (SMEs) remain very much at risk in South Africa, as these statistics released by the SA Police Service indicate," says Martin Janse Van Rensburg, spokesperson for Budget Insurance Brokers.
He adds: "Commercial crime is one of the few types of criminal activity that is continuing to escalate in the country."
Official SAPS figures for the 2009/10 financial year show that business robberies increased to 14 534 cases this year from 13 920 in the 2008/09 year - a jump of 4.4%.
For a SME, the effects of crime can be extremely significant. The impact of stock or cash being stolen or equipment being badly damaged can be devastating for a business that is not insured or even underinsured.
According to the 2009 SME Survey, SMEs regard crime as the most pervasive threat to their business's sustainability. Experts agree that the small business market is crucial to furthering the growth of the South African economy, as these types of organisation employ just over half of the country's total labour force.
Therefore, despite a tendency to count pennies during tougher financial times, it is all the more crucial that SMEs are covered for all risks.
Protect your business Although one does not want to focus too heavily on crime during the festive season, with many South African businesses closing during the weeks leading up to the New Year, it is imperative to be adequately protected in the event of a commercial crime at your workplace.
"Fewer people are on site during this time of year, placing businesses at a greater risk of burglary and other crime. For those reasons, amongst others, it is vital the one's business is properly insured, in order to avoid being left unable to carry on business as usual in the event of your business suffering a crime," Van Rensburg notes.
Budget Insurance Brokers Business Insurance offers business insurance that caters specifically for SMEs.
The policy ensures that any business, from professional, general, retail, office, medical to B 'n Bs and guesthouses, are comprehensively covered.
Van Rensburg concludes, "The facts are clear: commercial crime is continuing to rise in the country, placing SMEs at great risk. Make sure you are able to get back to business as usual, should your business fall victim to crime."
