Small Businesses Urged to Take out Insurance

Experts warn small businesses to take out insurance There has been a 40% increase in crime against businesses in the past year.

Cash strapped South African small businesses are looking for ways to cut costs wherever possible. However, insurance experts are warning that by halting crucial insurance to cover crime damage, these businesses are risking their very livelihood.

In the past year, there has been a staggering 40% rise in the number of robberies against businesses in South Africa, with small business owners taking the brunt.

70% of the total number of cases were in fact directed against small or informal businesses around the country.

Speaking for CIB Insurance Solutions, JonJon Smit said: "Given the current economic climate it is understandable that many small businesses feel that they are not strapped for cash."

"However," said Smit, "in light of the alarmingly high rate of business robberies, particularly against small companies, it is crucial that business owners ensure that they are adequately covered."

Insurance statistics are not particularly positive.

50% of surveyed small businesses admitted that they did not have the necessary insurance to get them out of trouble should they come up against a crime.

As a result, over 20% of them would probably need to close their doors in the event of a robbery.

"The suggestion that one in five small businesses could face closure in the event of a serious crime is very worrying, particularly as police figures indicate that this is becoming increasingly likely," said Smit.