Insurance helps to protect business owners against property damage and liability claims. It ensures that a business can continue running after an unfortunate event.
Insurance on the other hand is a mutual agreement in which an entity pays a fee on a particular basis i.e. monthly and is in turn offered indemnity by an insurance company in cases where the entity encounters an unforeseen misfortune such as theft, fire outbreaks etc. Insurance serves to alleviate businesses from the inevitable risk of losing everything at an instant.
SMEs in particular are in dire need of insurance as they find themselves at jeopardy as opposed to Large Scale Enterprises. Insurance is important for businesses because: It curbs chances of demise for a business- In the event of a loss, an insurance payment will allow businesses to recover quickly thereby evading a spontaneous ending.
It ensures that financial constraints are averted- Insurance covers will without hesitation come to the rescue and serve as a financial relief for a business which has been hit by unforeseen circumstances. The Bank also offer its customers a vast array of covers where they can select the best cover for their business which is appropriate and favorable for the particular business scale through its insurance broker FNB Insurance Brokers (Botswana) (Pty) Ltd. The bouquet of products includes:
• FNB Mogwebi: A coupon product which makes it more affordable and much easier for our customers to purchase the right insurance. The policy has ten insurance covers in one.
• Motor Comprehensive: Cover for your commercial vehicle against loss or damage including third party damage.
• Buildings insurance: Insurance against, fire, wind, and flooding just to mention a few.
• Employee Funeral Plans: SME customers get to benefit from employee benefits. FNBB specialises in structuring the right cover levels to meet the employer (SME size) to allow our customers to cover their employees. For instance, Group Life and Group Funeral schemes.
Insurance covers are dependent on the cover obtained; for example, in the case of a motor vehicle accident the motor policy will respond to cover and in the event of a fire, a fire policy will intervene.
It is imperative for customers to be knowledgeable of various insurance covers so as to select the appropriate one. It’s also equally important to read the policy wording once it is in your possession and ask questions if need be. All FNBB customers with assets to protect can apply for insurance covers with the Bank. Some insurance covers are required by law; such as Workers Compensation therefore all employers are required to have this cover. Premiums vary from company to company as the covers are distinctive and are specially made for a particular entity. For employee benefits it would depend on the number of employees and cover levels/ sums insured. For other covers the premium will depend on the value of the asset at risk, even the industry or the location. The FNBB Mogwebi Business Insurance premiums start at a minimum of P625.00 per month.
