Vital shield for small business owners
Short-term insurance
Small businesses face numerous challenges in today's constantly evolving business landscape, from managing daily tasks to dealing with market demands. A major concern for small business owners is unforeseen events that could disrupt operations and put assets at risk. Short-term insurance provides a crucial safety net, protecting assets and ensuring business continuity during unexpected challenges.Short-term insurance, or general insurance, protects businesses from potential financial losses over a specified period, usually up to a year, and can be renewed as needed. Unlike permanent insurance like life or disability coverage, short-term insurance focuses on immediate, tangible risks such as theft, property damage, liability, and business interruptions. This coverage provides business owners with financial security and peace of mind.
Assets such as property, equipment, and investments are vital to the success of small businesses. Events like theft, fire, or flooding can result in significant financial loss. Short-term insurance protects commercial property against such risks, enabling businesses to recover quickly. For example, if a retail store experiences a break-in, the insurance can cover the cost of replacing stolen goods and repairing damages, minimizing financial setbacks.
Liabilities
Liability is another major concern for small business owners. Accidents can lead to lawsuits and costly settlements. Public liability insurance and other forms of short-term coverage protect businesses from legal expenses related to third-party claims of property damage or bodily injury. For instance, a restaurant owner could be liable if a customer slips on a wet floor. Liability insurance helps cover settlement costs and legal fees, protecting the business’s finances and ensuring operations continue smoothly.
Business interruption insurance is another type of short-term coverage that compensates companies for lost income during disasters like fires. This insurance helps businesses manage unexpected interruptions without enduring severe financial strain.
Short-term insurance provides small business owners with a comprehensive safety net that safeguards assets, reduces liability risks, and ensures operations continue during unforeseen events. Entrepreneurs are advised to familiarize themselves with various short-term insurance options to effectively navigate the unpredictable nature of today’s business environment.
* Johannes Hesekiel is the General Manager: Sales and Underwriting, Old Mutual Short-Term Insurance, Old Mutual Namibia.
** Opinion pieces and letters by the public do not necessarily reflect the opinion of the editorial team. The editors reserve the right to abridge original texts. All newspapers of Namibia Media Holdings adhere to the Code of Ethics for Namibian Media, a code established jointly with the Media Ombudsman.