Business Interruption Insurance in South Africa

Imagine finally being able to report a profitable year for your start-up business. Imagine the horror, when a fire envelops it. And you see all your hopes and dreams going up in flames, bringing your business to a halt. All your chances to generate revenue are gone. How will you ever be able to resume business again? How can your business afford to be interrupted for a day, let alone weeks or months? Business interruption insurance is essential if you want to ensure your business keeps running when due to a fire or floods.

Covering your Financial Loss – Business Interruption Insurance

There’s a difference between property insurance and business interruption insurance in South Africa. Property insurance covers loss to the property because of fire for instance. But business interruption insurance covers the financial loss side of thing.

Any business needs this kind of insurance if you don’t want to be looking at financial ruin. Any hotel manager will tell you how guests have had to evacuate and other accommodation

Business Interruption Insurance Cover

arrangements made with them. The hotel covers the costs of this or refunds them all for the accommodation they lost. How devastating for a hotel to have to cancel any further bookings too. The worst part is for any business having to continue paying certain ongoing costs even though there is no income.

With business interruption cover, you will be ensuring your income right from the day of the fire right till the time your business is up and running as it once was.

Enjoy Ongoing Financial Wellness

Momentum is a partner if you want to enjoy financial wellness. As a financial services company, they offer a broad range of advice and insurance. They started in 1966, and their building insurance, for instance, covers you for financial losses brought about by an interruption to your business.

Optional extras for this kind of insurance include theft, machinery breakdown, landslide cover and accidental damage.

Momentum’s buildings insurance ensures your property has cover against damage such as power surges, burst geysers, burst water pipes, fire and explosions. Your property is insured for its full replacement value. Momentum covers you for these financial losses –

  • loss of operating profit
  • fixed expenses after an interruption
  • additional working expenses for maintaining normal business operations
  • interruption of certain services such as the telephone services, electricity and water supply

The beauty about business interruption coverage is that it reimburses the business owner for all those expenses during the closure time as well as the profit the company would have made during the time.

Business is competitive in South Africa. And if your company is out of action, clients will simply move on to someone else who can provide them with the products and services they need.

In South Africa, there are so many reasons that can put you out of business, and Momentum can provide the coverage you need. When your customers see your ability to overcome your setback and get back on your feet so quickly, their loyalty towards you is stronger.


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