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Recent years have seen the rise of small indigenous businesses in Zimbabwe. Most of these businesses are usually managed and run by the owners leading to little separation between the two. Furthermore, most of these entities are characterised by low levels of capital, few employees, a few key assets and less complexity in their operations. These companies are still in the growth stage focusing on expanding their business operations. Any interruption in the operations or loss of key assets can have a severe impact on ability to retain and acquire new clients. In extreme situations loss of an asset can lead to total company collapse as capital will be low. Clearly for small and up-starting companies risks are inherently higher as they threaten business continuity. Insurance cover is one of the best ways of safeguarding business stability. Below are some of the more common insurance products available to small businesses.

Motor Comprehensive Insurance

The crucial role of comprehensive insurance is to deliver financial protection against vehicle damage and/or bodily injury arising from accidents. It also provides cover against liability emanating from damage to third party property. It also offers financial protection against theft of the vehicle or vehicle parts. Evidently motor insurance is critical cover for a business owner who needs to be mobile more so if the car is a critical vehicle i.e. delivery van.

Fire Cover

This covers the insured against damage or loss of stocks and building resulting from fire or allied perils listed in the insurance policy. Associated perils could include flooding, storm and lightning. The insured should be the owner of the business to purchase the cover. It covers the expenses related to replacement, reconstruction or repair of insured property. This cover ensures business continuity in the event that the business premises as well as manufactured stocks are lost. Those renting out business premises can purchase tenants liability cover which provides protection against accidental damage of the premises in the course of business.

Theft, Money, Fidelity Guarantee

These types of insurance provide cover arising from theft. More specifically theft provides insurance against burglary and robbery against the business premises. Fidelity Guarantee covers the insured against financial losses caused by the dishonest actions of employees namely fraud and embezzlement. It covers loss of money or goods owned by insured for business purposes.

Money insurance covers for loss of money in transit to a bank or any depository institution from the insured’s business premises occasioned by robbery, theft or any other accidental cause. Money cover may also protect against loss from burglary whilst money is kept in insured’s safe.

Electronic Equipment

This insurance covers against accidental, unforeseen and sudden physical loss or damage to electronic equipment resulting from causes named in the policy. This could be theft, fire or flood. Negligence and normal wear and tear are not covered. Ideally assets covered under this policy include computers, laptops, cash registers, cell phones as well as software systems.

Business Interruption: This insurance protects the business owner against loss of income arising from an occurrence that affects the business to continue its operation as normal. Usually the occurrence would be an event such as fire, flooding or any peril other covered under the fire insurance policy. It usually covers the profits that would have been lost. The maximum period of cover is usually commensurate to the time expected to get the business up and running once again.

Public liability cover: This insurance protects the insured against legal liability arising from damage to third party property or bodily injury in the normal course of business. For example liability arising from damage to nearby structures, personal property and expenses when insured peril occurs.

Personal accident

Since small businesses have a few employees group personal accident insurance may not be applicable. However, the insured can take ordinary personal accident cover for employees. It will pay benefits in the event of accidental death or severe injuries which result in permanent disablement.

Finally most of the covers mentioned above can be combined into one business package policy enabling for ease of administration and more affordable discounted insurance premiums. Purchasing the relevant insurance package will save you unanticipated expenses, ensure business continuity as well as allow you to pursue your business growth objectives confidently.

• For more information about NicozDiamond Insurance please contact us on the following: Call Centre: 263-4–701133, 704911, 251008, 700146 – Tel: 263-04–799286, 700297 – Fax: 263-04–704134, 700083Toll free: 0800 4244 – Email: [email protected] – Website: www.nicozdiamond.co.zw