As a business owner optimising your entire value chain is critical for long-term sustainability. Often levels of skill in terms of balancing the needs of the various role players are involved. The business, for instance, would need to manage suppliers who provide the raw materials, employees who deliver the goods and services and strategy for the acquiring and retaining of customers who want what you offer.

A lot of your time as a business owner is taken up by managing the balance between providing goods and services to customers at a competitive price and the internal workings of the business used to deliver products or services. Each business therefore has its own community which needs to be continually nurtured.

Like any other community, things can go wrong due to unforeseen events and this is when having a Business Insurance policy is crucial. The cover will protect the company's key assets and also manage the risks associated with members of the company's “value chain community”. For example, take what would happen to your business if one of your suppliers could not provide you with materials due to a fire on their premises? How would the business respond to the loss of income and inability to meet customer orders? Or if a customer slips and falls at your premises and holds you legally liable for the medical costs and loss of income they incurred?

Thankfully, a Business Insurance policy provides various covers to enable business continuity:

• Business Interruption This covers the business for loss of revenue/sales/turnover/income as a result of an insured peril like fire or storm damage occurring on your business premises which impacts operations. This could include instances where one of your suppliers suffers a loss due to an insured peril that prevents them from providing you their goods and services.
• Public Liability will protect your business against third party claims, due to accidental damage to property or bodily injury occurring while on your business premises.
• Work Away Liability This protects you from third party claims for accidental damage to property or bodily injury while performing services at a client’s premises.
• Defective Workmanship covers property or personal injury third party claims due to faulty work you provide on a client’s property.
• Fidelity Guarantee covers the business against losses due to employee dishonesty, fraud or theft.

There are many other damages which a business policy covers such as fire, theft, buildings and office contents. As a business owner you should always look to ensure that all aspects of the business are reviewed and how you can limit potential risk to the business. For more info on business insurance, visit our FAQ section at www.hippo.co.za/business-frequently-asked-questions/