The importance of SME's having the right insurance cover

It is incredibly important for people who enter the environment of owning a small business or being an intrepreneur, to get the right cover. You can't just keep your personal cover and think that it will be enough.

For entrepreneurs, it's very important to distinguish between your personal cover and your business cover, says Ruan Roux, Senior Specialist, Risk Business Development at Liberty. "When I talk to clients I ask them what their biggest asset is, and a lot of people tell me that it is their house or their portfolio, but their biggest asset is actually their ability to earn an income. If that is taken away, they can't cover their expenses in terms of their household. So that's on the personal side, very important to keep that on one side."

"On the other side, you've got business cover, or business risk management, and what happens if something happens to them, their business is still going to incur those expenses. So you need to cover those business expenses, those running costs. That's on the one hand, the other hand, is you also need some sort of a business continued plan. So if something happens to the owner, what's going to happen to the business as a whole? Is there somebody else that's going to buy the business from them? Or is it just going to form part of the estate and then somebody in the family will need to take the reins in the business. It is therefore very important to to cover both both angles," says Roux.