Top Causes for Business Insurance Claim Losses

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business insurance quotes South Africa

In December of last year, the Allianz Insurance group did some research into business insurance claims in order to ascertain the biggest threats to businesses, and the biggest claims.  Unsurprisingly, the most common claims are not those that demand the biggest payments.  What is surprising, however, is that the study discovered that the biggest threat to businesses is power failures.

With load shedding in this country, one would expect the business insurance South Africa uses to cover losses as a result of power outages.  However, the research done by Allianz showed that power outages are a major threat to businesses the world over.

The report believed that power cuts present such a great threat of interruption of business due to the interconnectivity now associated with power supply.  While individual grids used to be the source of power to small parts of cities, some countries are now so interconnected that a power outage could affect the entire country – or even parts of a continent.

The Importance of Business Insurance Quotes

As mentioned, the business insurance South Africa offers must cover the possibility of interrupted business as a result of power outages.  However, there are numerous other factors that affect businesses.

According to global figures, burglary and theft are top of the list of common threats to a business.  However, in terms of expense, burglary and theft are bottom of the list.

The most costly claim from an insurance point of view is reputational harm as a result of slander or libel.  Next on the list of costly claims is vehicle damage, although this is only ninth on the list of common claims.  Interestingly, reputational harm – which is the most costly claim – is ninth on the list of common claims.

This shows that the most common claims are usually more reasonable for insurance companies to cover, and the most costly claims tend to occur less often.  This is a scenario that works well both for business and business insurance companies.

This also brings the added benefit of the possibility of some very attractive business insurance quotes.  So, if your business is operating without insurance, now is the time to get covered.  With threats such as fire, weather damage, customer injury, and product liabilities, as well as the other threats previously mentioned, operating without solid and reliable insurance is a risk that is simply not worthwhile.

 

Image credit: https://www.freedominsuranceinc.com/

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