Money insurance protects your business money by providing cover for loss or damage to it whilst on your premises or in transit. If your business keeps more than R5 000 in cash and wants money insurance, it is important to have the correct safe.
You probably need Money insurance if you have any the following items which are at risk of loss or damage at your premises or are being transported:
Your insurance policy will have its own specific list of insured events and exclusions. It is best to check with your insurer or the policy wording to confirm the details of your Money insurance policy.
Some commonly covered and not covered items include:
Most businesses choose the maximum amount of loss or damage that their business can experience in a single event. For example if:
Adding up the amount of money that could possibly be lost or damaged in one event (for example fire, theft or fraud) is usually taken as the total cover amount.
Types of safes
The maximum amount of money that you can insure depends on the type of safe that you have:
The SABS grading can usually be found on the inside of the safe.
Theft
Damage and loss
If you have money (cash, bank notes, etc.) worth approximately R200 000 at any time in the year, but you think only R100 000 is at risk of loss or damage then a typical amount of cover would be R100 000. If you over-insure and take out cover for R300 000 it means you have more cover than you need, and your premium will be higher.
If you under-insure and only take out cover for R50 000 then you might face the risk of paying for some losses with the profits of your business. The insurance company will only pay up to the amount which you choose as your cover amount. Your business will be responsible for any amount above that.
Generally, the higher the level of risk that your business is exposed to, the higher the cost of the premium.
Does my business hold large sums of money on-site, or do I transport money to and from my business premises?
Insurance history gives the new insurers a chance to get to know what sort of client you are. If you have a good insurance history and few claims, you have an increased chance of having cheaper premiums.
It is very important to be honest when disclosing your claims history – if an insurer finds that you were dishonest, you may not be covered when you have a claim.
The obvious factors are your selected sections and amount of cover – more protection means higher premiums. Other major factors include occupation, address and claims history. If other businesses in your occupation or area have had lots of losses in the past, premiums will generally be higher.
If your business has had lots of losses in the past, your premiums will usually be higher. It is very important to be honest when disclosing all of your information – if an insurer finds that you were dishonest, you may not be covered when you have a claim.
It is best to submit the claim form as soon as possible after a loss to ensure that there are no delays or issues, some insurers may request reasons as to why there was a delay in claiming if a form is submitted after 30 days from the date of loss.
