Insurance Warning for SMMEs Ahead of World Cup

Insurance issues need to be foreseen by SMME reminds Mutual & Federal They warns that SMME operating from home should take into account the cost of insurance.

With the World Cup just around the corner, many ambitious South Africans have created business plans to offer their goods or services during the soccer extravaganza to increase their income.

However, short term insurers are reminding SMME's (Small, Medium and Micro Enterprises) that before they launch their businesses, they should remember that insurance is a very important part of the equation.

Mutual & Federal said that those SMME operating from home should take into account the cost of insurance to prevent the crippling of the fledgling businesses before they even start up.

"When starting or expanding a business on residential premises it is very important for owners to put together a comprehensive business plan that considers costs for insurance cover," said the General Manager for Product, Actuarial and Reinsurance at Mutual & Federal, Edward Paul.

"While the business might be poised to be a stellar success, if the need to claim arises and the correct insurance cover does not exist, the costs to replace the damaged or stolen goods could cripple the business," he said.

It is important to make sure that entrepreneurs consult with their insurance brokers to make sure that they have sufficient cover to replace costs should the need arise.

"Setting up a business can be a costly affair and it's important to get the right insurance cover to suit your business needs," said Paul. "Insurance advisors exist to help business owners find the correct insurance cover and Mutual & Federal encourages all SMME's to check that they are adequately insured before the need to claim arises."

According to Paul, it takes dedication and commitment to set up a business - all the more reason to ensure that all the hard work is secured by the proper cover.