Three insurance lessons you can learn from, but don’t have to get burnt from…
It’s not my fault. I didn’t do it. Why should I be affected by this?
We often hear these words from clients and the fact of the matter is that it sometimes isn’t your fault, it’s sometimes out of your control, but the affects could be devastating, and this is why getting insurance and being covered properly, is something we couldn’t stress more about.
We previously chatted with Brandon Wanless, our hero with two superpowers: insurance and tax.* and he told us about three insurance lessons that are NB.
Lesson 1: Make sure you are covered for unseen events.
What happens when things don’t go to plan? Like a natural disaster? Our KZN clients are very familiar with this, given the floods last year. There is nothing more stressful than when a catastrophic event like this happens and you’re not covered for it.
“Banks are great with including insurance on your home (that covers you for damages to your property following an event) but the catch is that they are normally more expensive than going through your broker” says Brandon.
Make sure you have landslip and subsidence [insurance].
Lesson 2: Plan for those who haven’t.
“60-70% of people driving on the roads are not insured.”– Brandon.
Eeeek. This seems unfair. Why should events out of your control affect you?
Because of recent devastations, like the KZN uprisings, SASRIA (who provide coverage for malicious damage caused by “politically and social unrest through acts of violence such as riots, strikes, terrorism and public disorder”) have “increased their rates by 1,500%,” says Brandon; “SASRIA rates are not just affecting business owners… but also us; the man in the street.”
Lesson 3: Don’t get sued by your staff for business decisions that cause loss of income and lay-offs, or worse, the business goes under.
Brandon tells us that there is Directors and Officers insurance policies that can protect you – if there are losses by default and unintentional – where you’ve made a poor management decision and your business suffers. Your staff can actually sue you for mismanagement and their loss of income.”
Brandon has many more lessons that he could share, but his biggest concern is that you make sure you are insured because these three lessons are not necessarily in your control, but they could have a major impact on you and your families’ lives.
That’s why we always say insurance – even when it’s not your responsibility – Just. makes cents.
“Failing to plan is planning to fail.”– Allen Lakein