Business Insurance Port Elizabeth

The term “business insurance” encompasses different types of cover that protect businesses from losses due to events that may occur during the normal course of business. There are many types of insurance for businesses including coverage for property damage, legal liability and employee-related risks. Businesses must evaluate their insurance needs based on potential risks, which vary based on each business’s environment.

According to South African law the following types of insurance are compulsory:

• Motor Vehicle Fund (MVF): An owner or driver of a car is covered by this fund when a third party is hurt or killed in an accident from negligence. A levy is charged on petrol sold to motorists to collect money for the fund. The fund will pay for hospital and medical expenses, loss of income due to the accident, and compensation for pain, suffering and disfiguration.
• Unemployment insurance fund (UIF): The Unemployment Insurance Act is a compulsory state scheme whereby the employer, the employee and the state contribute to the fund. When a contributing employee becomes unemployed, the fund will pay him or her an allowance for up to 26 weeks or until new employment is found.
• Workmen’s compensation: Employers must insure employees against death or disability due to accidents at work. The fund will provide compensation to workers and their dependants for medical expenses and for loss of life or disability.
• Public liability insurance: A business is a place where the public may work or visit. Should an accident happen at the business, for example a member of the public slips on a wet floor, he or she can sue the business for damages.