The recent public lootings and riots have highlighted the need for graduate professionals running a business or healthcare practice to protect their investments or assets, writes PPS.
As a graduate professional running a business or healthcare practice, it is important to protect your investments or assets that you have worked so hard for. In the dental and medical profession for example, the technology investment and maintenance of the latest equipment is extensive and could have a crippling impact should these be damaged.
The survey by BeyondCovid, a research company, revealed that 62% of the small businesses that were looted and damaged during the riots did not have business insurance and as a result, there is little to no chance for such businesses to recover financially.
The riots and looting are not the only challenges many small and medium-sized enterprises (SMEs) are now faced with. The ongoing impact of the COVID-19 pandemic could potentially cause equally substantial pressures on the finances of SMEs.
Much anxiety has gone into the plight of especially small and micro-sized practices that employ between one and 49 people in this time, with good reason. These businesses often do not have access to the large capital reserves like their corporate counterparts and so the impact of COVID-19 on them cannot be overstated. More than 90% of South Africa’s businesses are small businesses, so their failure has a massive impact on unemployment and the economy. The survey further found that larger businesses were in a better position than their small counterparts when it came to insurance.
Although a lot less vulnerable in other ways, medium-sized businesses such as a legal firm or accounting practice that employs between 50 and 249 people have arguably increased risks than smaller companies. Larger companies – such as in the engineering or medical industry for instance that employ 250 or more people – are also suffering in the financial bloodbath caused by COVID-19. They have even less of the relief options that medium-sized enterprises do, with more expensive monthly overheads including staff salaries. To make matters even more complex, many larger companies are also suffering fallout due to having offshore investments.
For many years, the volatility and geopolitical uncertainty in South Africa meant that it made sense for many businesses to have significant offshore exposure – never once imagining that uncertainty worldwide to this degree could eclipse uncertainty locally. The good news is that larger companies are better equipped to deal with any business interruption risks than their smaller counterparts.
As a business, you should ensure that you are getting the correct advice from a broker who understands what you need. It is also important that you inform your broker or insurance provider if you have any changes to your policy. You should also adhere to the underwriting requirements such as alarm conditions for your claim to be successful.
The only way to safeguard your business assets is to ensure that your policy covers anything from your business vehicles to your building contents and indemnity requirements as a professional.
As the only commercial insurance company for graduate professionals providing intelligent insurance solutions, PPS Short-Term Insurance understands the professional industry and the risk context in which these businesses operate. Insurance cover is provided for fire, office contents and business interruption; electronic equipment and buildings combined; accounts receivable and goods-in-transit; public liability cover; money, fidelity and theft; glass and accidental damage; and business all-risk.
To get the best cover to safeguard your assets against the unforeseen, get expert advice from an authorized PPS Representative who provides advice-led strategic financial plays through seamless specialised services and solutions.
Wilma van der Walt, Executive Customer Experience and Operations for PPS Short-Term Insurance
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*Disclaimer: Information provided here is not intended nor does it constitute financial advice.
About PPS Short-Term Insurance
PPS Short-Term Insurance is a wholly-owned subsidiary of PPS Group, a financial services company that provides a comprehensive suite of financial and healthcare solutions exclusively to graduate professionals. PPS Short-Term Insurance provides tailored short-term insurance products and services for professionals. The Intelligent Pro-Insure Car/Home/Business Insurance includes a number of cover options such as motor insurance; household contents cover; and business all-risk cover. PPS Short-Term Insurance members with qualifying PPS life risk products receive Profit-Share allocation on their personal lines products, a benefit that is unique in the short-term insurance industry. Additionally, PPS Short-Term Insurance members enjoy complimentary PPS Concierge Services which are accessible on the PPS Short-Term Insurance App. Visit https://www.pps.co.za/protectinsure/carhomeinsurance
for more information. PPS Short-Term Insurance is a licensed insurer and financial services provider.
About PPS
PPS boasts in excess of 150 000 members who enjoy access to a comprehensive suite of financial and healthcare products that are specifically tailored to meet the needs of graduate professionals.
PPS is the largest South African company of its kind, exclusively for graduate professionals, that still embraces an ethos of mutuality, which means that it exists solely for the benefit of its members. Thus, PPS members with qualifying products from PPS Insurance, PPS Investments, PPS Short-Term Insurance and Profmed share in the profits of PPS Insurance, PPS Investments, PPS Short-Term Insurance and PPS Healthcare Administrators via annual allocations to the unique PPS Profit-Share Account. PPS membership provides access to the following tried, tested and trusted products and services: PPS Life Insurance, PPS Short-Term Insurance, PPS Financial Advisory, PPS Investments and Profmed Medical Scheme. Visit www.pps.co.za for more information. PPS is a Licensed Insurer and Financial Services Provider.