Small business owners that do not have adequate insurance cover face considerable risks, especially as commercial crime in South Africa continues to increase. According to the latest crime statistics, the number of business robberies for instance has shot up with over 40% in the period April 2008-March 2009.

The figures also showed that small and informal businesses were the worst affected - accounting for almost 70% of the total number of cases.

In the meantime, a survey by research company SBP has shown that 50% of small businesses in South Africa were not insurance in the event of crime. Most businesses said they could not afford to insure themselves.

“Given the current economic climate it is understandable that many small businesses feel that they are strapped for cash. However, in light of the alarmingly high rate of business robberies, particularly against small companies, it is crucial that owners of enterprizes ensure that they are adequately covered,” says JonJon Smit at CIB Insurance Solutions (CIB).

“The suggestion that one in five small businesses could face closure in the event of a serious crime is very worrying, particularly as police figures indicate that this is becoming increasingly likely,” he added.

Source: Cape Business News