Spring Clean Your Insurance
They say that spring is one of the most inspiring seasons. In fact, it has been said that spring is even more inspiring than the start of a new year. And we’ve all undoubtedly succumb to the setting of new year’s resolutions. Spring brings about renewed energy, the warmer weather encourages us to exercise more, clean cupboards and for want of a better word, ‘spring’ clean our households. Have you ever considered spring cleaning your insurance?
The last few months have proven rather challenging. The riots across our country in July, extended lockdowns and the impact of Covid have left businesses and individuals reeling. Many are suffering from financial pressure due to jobs cuts, reductions in salary, unemployment, depression, burnout, the list goes on.
The context in which we find ourselves in both personally and commercially calls for a few considerations:
- Have there been any significant changes that require you to review your insurance cover?
- Are you correctly covered to mitigate the potential risks?
- Have you truly considered the value and importance of good advice?
- And lastly, is spring going to leave you inspired?
Insurance, just like spring, is a living organism and requires regular review and adjustment. Even small changes could require associated changes in your cover. At the least, a yearly review of your insurance policies gives you the opportunity to explore how these changes affect your coverage needs and consider changes you might want to make to accommodate them.
The daily pressures of running a business are cumbersome, and business insurance also requires regular review. It’s like a prepaid electricity meter – if you don’t check it, at some stage, you will run out. Insurance, although not requiring such rigorous monitoring, does require regular and consistent review to ensure your business is adequately and correctly covered.
In light of Covid over the past year, we have witnessed supply across a number of industries dropping significantly and being unable to meet demand. The second-hand car market for example has seen a reduction in stock, increased demand, and ultimately increased prices with consumers paying over market prices. What impact will this have on insurance? Vehicle values change due to depreciation, insurance cover on those vehicles should ultimately adjust over time too.
Businesses that rely indirectly on marine where products are being imported have had a lot to consider. Lead times have now increased due to the impact of Covid on the supply chain. What resulting impact has this had on your business? Do you have the right measures in place to protect your business from the increased risks? The extensive properties, containers and businesses that were recently looted in Durban, did the transporters have the right GIT insurance in place to protect the consumer?
Are you up to speed with legislation and the legal requirements surrounding sprinkler systems and fire protection in your commercial building? There are very strict regulations when it comes to fire safety and protection against fire in any building in South Africa and your insurance needs to cater to these regulations. If occupancy within a building changes or there is a change of use within a building, then the occupancy needs to be re-evaluated in accordance with the latest codes and this could result in a change in fire protection requirements. This ultimately has an impact on your insurance covers and requirements.
As technology continues to develop and with the significant increase in remote working, we have seen a drastic rise in cyber incidents. Cyber insurance is now an important consideration when assessing your risks and proactively preparing for potential loss or damage caused from a cyber-attack.
On the converse, with many consumers now working from home, insurance companies have responded positively to the change in driving habits by offering a reduction in car insurance premiums. When it comes to home contents insurance, carefully and regularly updating your household inventory could provide an opportunity to update your coverage and risk requirements. It’s also important to ensure that your goods are insured at replacement value and not market value. There are so many factors that could have an impact on your insurance and the appropriate covers you require.
At Econorisk, we hold binder agreements with the top A-rated insurers. This means that we offer insurance choice. And this means that we are able to ensure the right fit for your insurance requirements. We do not just sell a standard policy for the sake of ticking a box. Along with our risk consultation process comes prudent advice. We believe advice from the wrong person is a risk in itself, and with so many variables, the value of good advice cannot be undermined. Do you have any insurance and risk-related queries you’d like to discuss with one of our insurance specialists?
Lastly, what other changes might you consider making this spring? We hope the season will leave you feeling inspired and if you’re interested in any insurance spring cleaning, we would be happy to engage with you and provide a comparative quote that meets your unique risk needs.