With the industry facing multiple new legislative changes, insurers now more than ever before have to ensure that their value propositions are appealing and competitive. Insurance companies not only have to demonstrate real value to brokers’ clients, but to the intermediaries too. This is particularly true in the business insurance space, where businesses are exposed to new risks every day and the role of the broker is vital.
The relationship between brokers and insurers is set to evolve even more over the next few years. One thing however will remain constant: the broker distribution model will always remain relevant and significant within the South African insurance landscape, particularly within the business sector.
The primary function of business insurance is to cover the costs of unforeseen insurable events which the business may be exposed to. Insurers provide the products and the brokers evaluate and choose whether or not to include the product in their client’s portfolio. The broker is responsible for sourcing clients, building lasting relationships with his or her clients and offering them the insurer’s products that will best cover the risks faced by the business.
Business owners need proper and tailor-made advice when it comes to insuring against business risks – it is not a one size fits all approach. Business insurance cover comes in many forms and policies to cover a variety of different risks and needs. There are various factors that determine what cover a client will need and the related premium will depend on factors such as the nature of the business, whether the business operates from a commercial building, home office and whether it has employees.
A good business insurance product is highly flexible and offers the policyholder a vast selection of cover and extensions to ensure that the business is sufficiently insured against potential financial loss. Some potential risks currently facing businesses include; fire cover, office contents cover, business interruption cover, buildings combined cover, accounts, receivable cover, public liability cover, glass cover, money cover, fidelity cover, accidental damage cover, goods in transit cover, business all risk cover, electronic equipment cover and theft cover.
Early on in 2017, PPS Short-Term Insurance entered into the commercial insurance space to ensure that our graduate professional clients can receive end-to-end cover for both their business and personal insurance needs through the company. We broadened our offering mainly due to the fact that our clients, who are graduate professionals, own a private practice or a business and required a commercial insurance policy. This product is exclusive to graduate professionals and is supported by personalised service our members have come to expect from us.
The PPS Short-Term Insurance business product provides cover for a graduate professional’s business, even if it is not linked to their qualification. For example, if a qualified medical doctor owns a restaurant, we will insure those business risks even though it is not related to their specific profession.
When it comes to providing business insurance cover, we at PPS we realise that graduate professionals invest a lot of time and money into their business. Therefore, we want to assist brokers to ensure their clients have a tailor-made solution to protect their business, their assets, employees and their own livelihood.
PPS is an authorised financial services provider.
By Nazeer Hoosen, CEO of PPS Short-Term Insurance