Page 22 - issue 19

22 Business

Insurance

That Every

Small

Business

Needs

>> By : Botswana Insurance Company PR <<

ome small businesses consider compensate for injuries Briefly the insurance cover is meant to
insurance premiums to be sustained at work as required by provide for the loss of profits due to a
an unnecessary expense, yet law. Worker’s Compensation covers decline in the revenue generated by the
Swithout insurance cover, they employees in the event of bodily injury, business after the loss and increased
can experience financial difficulties if a scheduled diseases stated under the Act costs of work. This loss is calculated
peril covered byinsurance was to occur. schedule , or any disease which results based on the time frame which you have
Insurance cover for business is available to in disablement or death whilst at work. determined at the commencement of
protect, lessen the impact of the loss to the Worker’s compensation is mandatory in the policy and known as the indemnity
business owner, and the employees from Botswana and penalties can be imposed period. This normally is the period that
events such as fire, storm flood and injury by the Department of Labour, if this it would take to repair the property, or
to employees whilst they are in the course insurance is not in place. the lease a similar premises, including
of their employment. Buildings and Contents: SMME’s retooling and restocking, to bring the
can also be protected by insuring their business to the condition it was before
It is advisable that every business should buildings and office contents, stock, the loss.
effect insurance to prevent serious financial furniture, fixtures and fittings, tools
difficulties which could cause the closure and machinery. Fire insurance, covers This policy also provides coverage of
of the entity which would result in loss of buildings of a commercial nature wages which must be paid to your
jobs for the employees and the livehood such as shops, stores, workshops and employees based on contractural
of the owner . Insurance is very important warehouses against perils such as fire, agreements and for skilled employees
for business and should not be treated lightning, storm, floods and explosion which you would like to keep during the
as a luxury in an attempt to cut costs. To and other additional perils. Office interuption period.Botswana Insurance
ensure that start-ups and SMME’s succeed, Contents Insurance covers damage to Company recommends small medium
business owners should have the necessary office furniture or/and other contents enterprises to seek guidance from
insurance covers in place.There are a that a business owns that is inside an Insurance Broker or Agent to ensure
number of options available that provides the premises against fire, lightning, that you have ample coverage. If
cover for the small business owner, and the thunderbolt, explosion and other perils businesses are not adequately insured
following are recommended for SMME’s. stated. this can result in devastating losses which
often results in business closure.
Worker’s Compensation/ Employers Business Interruption: Remember that “Prevention is better
liability : Since employees are very This type of policy is not normally offered than cure
important to the success of a business, on its own, but only as an additional
their well being must receive top priority to cover to your main fire and perils cover.

Issue 19 Oct/Nov - 2018 www.engineermagazine.co.bw www.engineermagazine.co.bw Issue 19 Oct/Nov - 2018