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8.1 The Importance of Insurance for Small Businesses

Beautiful diversity may be seen all around South Africa. This is reflected in our small company economy, which ranges from upscale apparel boutiques in Cape Town to inner-city spaza stores that cater to Durban’s pedestrians. These companies may appear to be as diverse as night and day, yet study reveals that they all have a vulnerability to criminality. According to a government report, burglaries and robberies are the most frequent crimes, and they have affected more than half of all small businesses.

Business insurance may aid in your company’s financial recovery in the case of theft and other unanticipated occurrences, such as lawsuits or bad investments that can possibly bankrupt your company. Companies with a range of turnovers were assessed, and the results showed that some of them had losses of up to R100,000 each year. It’s understandable why so many small businesses fail before they can prosper given that just 50% of South African enterprises are reportedly insured.