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Insurance Like it or not, but insurance is a necessary evil. Some of the more common types of insurance are briefly discussed here. Before committing to insurance, you should get the advice of a professional on insurance consultant. Key-man Insurance Should you drop dead tomorrow, Key-man insurance guarantees that cash will be available to cover the debts of the business (leases, bank overdrafts etc) and to provide the necessary funds for the recruitment and training of your replacement. Bear in mind that the bank will freeze the business bank account unless you have measures in place to prevent this (such as a partner, someone with signing powers etc.) – this is something that should be discussed with your bank and lawyer. Public Liability This is one type of insurance that has cheap premiums and which you cannot do without. This covers the public in the event of an accident while on your premises. For example, someone is walking into your office, slips on a just cleaned floor, hurts themselves, and before you know it you get a summons for R 100,000 or more (depending on the severity of their injuries and how many American TV shows they’ve watched). Some businesses (particularly restaurants and supermarket chains) are more vulnerable to these types of claims that other businesses. As more and more people watch American TV shows, they get the idea that pretending to fall and then “suing for damages” is a good substitute to working for a living. If you have public liability insurance, the insurance company will take care of all claims, and will expose any fraudsters. The premiums for this insurance are lower than other types of insurance. Life Insurance Pays out money to the selected beneficiaries in the event of your death however, one thing the insurance companies don’t tell you while they’re taking your money is that in some cases, should your death be crime related (hijacking, armed robbery etc), then they will ONLY PAY AFTER RECEIVING THE POSTMORTEM REPORT FROM THE POLICE, which can take anything from a few weeks to a few months. For this reason, always keep some money in a place (or account) that your family can access in an emergency should something happen to you.
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