Latest storms in KZN highlight the importance of short-term insurance
Pietermaritzburg and a few surrounding areas were subjected to harsh weather conditions last week. Hail stones, rain and heavy wind resulted in vehicles and buildings sustaining damages.
Zane Govender, a short-term insurance specialist described the event as a ‘freak storm’ and outlined the importance of having assets such as vehicles and buildings insured for such events.
“It is important to make sure that your assets have sufficient coverage in the event of both natural and man-made disasters.”
According to Govender, business insurance should be prioritized by their owners.
“Businesses often have the majority of their capital invested in stock, equipment, vehicles or buildings. Totally or partial loss could result in a business never recovering financially. Insurance is designed to put that particular business back to where they were prior to the event and to ultimately allow the business to continue by minimizing their losses,” said Govender.
Gavin Naidoo, managing director of Poobie Naidoo Sports in Pietermaritzburg recognizes the importance of business insurance.
“We recently experienced fire at our store which was a massive loss and could have been disastrous had we not insured which covered us against fire,” said Naidoo.
During the storm Naidoo’s business was not greatly affected and was mainly due to the advanced warning system by insurance companies.
“The building sustained minor damage. However, due to advance notification by my insurance company we were able to get our company vehicles under shelter which ultimately prevented unnecessary damage to them,” he said.
Naidoo believes that it is important for all businesses to have insurance irrespective of the size.
“If you have recently started a business and have assets essential to the running of that business, I strongly recommend that you budget towards insuring these assets. Never cut costs with such covers. As you could also regret it and always read the fine print on your policy document,” concluded Naidoo.
Picture: ANDREAS MATHIOS – Blue Security