Zimnat in its effort to make life better will today explore exposures that may threaten the profitability and survival of a business and the respective insurance covers to ensure that business is protected at all times. It’s written with the small to medium enterprises that are sustaining the majority of the Zimbabwean economy in mind.

The most common causes of loss to business are amongst fire, lightning, explosions, storms, flooding, impact by vehicles or animals, bursting of pipes amongst others. Regardless of the industry in which a business operates, it’s bound to own some assets. These could be buildings, fittings or equipment used in the days to day running of a business. All assets could be subject to damage by the said causes. It’s wise to ensure that you are covered.

Should any of these perils befall a business on a large enough scale, it is likely that operations are going to be affected. Imagine a fire at a restaurant, it may cause the premises to be closed for the time until the damage is restored, starving the business of income. The business may decide to operate from another premise, at a higher cost. All the while still incurring fixed costs. Even after the premises are restored, It may take time until the business regains its market share. Business interruption cover exists to cover all these eventualities. The insurer will pay an amount equivalent to the gross profit the business would have earned had the disaster not occurred. It will also cover additional costs incurred because of the disaster, like getting a new premise, hiring more staff or getting current staff to work overtime.

Imagine what could happen if you lost a record of what customers who owe you money. It would be as good all the money that customers owe has been lost. Not with accounts receivable cover offered by Zimnat. Accounts receivable insurance provides protection for a variety of situations involving a company’s accounts receivable records. First, it will cover a firm for sums that can’t be collected from customers due to records being damaged or destroyed by a covered peril.

The coverage also provides reimbursement for collection costs in excess of your normal collection costs. Most businesses incur regular costs for collecting money owed by customers, such as a book keeper spending a few hours each month reminding customers that payments are due. Accounts receivable insurance covers expenses over and above these normal costs, which come as a direct result of a loss. One example of such a cost is the hiring a temporary worker to assist with collection activities. Accounts receivable insurance will also cover the costs of re-establishing your accounts receivable records, such as the costs of hiring an IT consultant that specializes in data loss recovery. Theft insurance covers break in and theft. If will covers property damage resultant from the theft and the loss of stolen items.

Any business with revenue will at some point have cash on their premises. In business, handling money, be it at the premises during working hours, in a safe outside working hours, in transit to the bank or other branches of the business or at directors’ residence can cause some anxiety. Zimnat General Insurance can help you successfully overcome these situations and put you firmly in control of your business. With Zimnat’s Money Policy, you can safeguard your Money no matter where it is.

Replacing commercial glass in a building can be very costly. Structural glass commercial buildings, retail establishments, showrooms, shopping complexes, restaurants and hotels often all have very large glass exposures that can cost thousands to replace. In addition to structural glass, Plate Glass cover protects a wide variety of exposures including Ornaments, Chandeliers, Glass counters and showcase cabinets amongst others.

When materials or stock are an essential asset to your business it is vital that they are protected during transit. A Goods in Transit Insurance policy does this, insuring you against loss, damage or theft when your goods are on the move. Whether you are a tradesman transporting expensive tools and materials from job-to-job, or a retailer that relies on distributing products via a third-party courier, Goods in Transit insurance serves to protect the long term security of your business.

Zimnat’s Business All Risk covers items which belong to the policyholder and are usually worn or taken away from the business risk address. These could be phones, laptops, stethoscopes for doctors or any equipment that your business needs to carry around.

Business liability insurance protects a company and/or business owner in the event of a formal lawsuit or any third-party claim. Coverage includes any financial liability incurred in addition to expenses related to the company’s legal defence. There are two main types of business liability insurance: general liability insurance and product liability insurance.

1. General liability insurance – provides insurance coverage for lawsuits arising from injury to the public, property damage caused by an employee and injuries suffered by the negligent action of employees.
2. Product liability insurance – for businesses that manufacture products for sale on the general market. Product liability insurance protects against lawsuits arising from injury or death caused by their products.

Employer’s liability insurance protects employers from financial loss if a worker has a job-related injury or illness

Accidental death or injury of an employee in the course of employment is a peril every business owner should be wary of. If unchecked, this could rake up quite a bill for the company in medical bills and compensation to a deceased family. Employee personal accident provides cover for such situations. It provides pay-out for accidental death or injury of employees during the course of their duties.

The last cover we will consider is theft by your own employees.  Companies are exposed to significant financial losses annually, due to crime committed by employees and it is reported that Fraud is on the increase. Combined with the growth in the use of electronic data and asset transfers, the fidelity losses faced by employers are increasing substantially.  Fidelity Guarantee insurance is designed to indemnify the Insured for the loss of money or property sustained as a direct result of acts of fraud, theft or dishonesty by an employee in the course of employment.

The article has looking at common causes of loss within a business.  Zimnat will help you evaluate your heir insurance needs based on potential risks, and tailor make cover best suited to your needs.

 

Written by Raymond Jowa

For more details send an email to customercare@zimnat.co.zw or call us on +263 242 775 82/3/5/6

Website: www.zimnat.co.zw