Real Estate Investor Magazine South Africa March 2016 | Page 32

INSURANCE

Are you Insured against

Strikes and Protests?
Increased protection for your most valuable assets
BY DREW HOOK

C

hoosing insurance cover can sometimes feel like
wandering through a bewildering maze and,
in today’s uncertain times, cover for damage
experienced during special events such as civil unrest,
protests, labour actions or acts of terrorism is an essential
consideration.
What few consumers realise is that this kind of cover
is not automatically included in standard building,
vehicle and valuables insurance policies. It is an optional
add-on offered by Sasria, a state-owned entity that
provides insurance for special events not covered by
retail providers.
In terms of the Department of Finance’s Treating
Customers Fairly (TCF) regulatory guidelines, all
insurance brokers are, however, obliged to advise
consumers - whether businesses or individuals - that
packaged insurance products do not automatically
include Sasria cover, and to offer it as an optional extra.
On the other side of the coin, consumers can only benefit
from Sasria cover if they have an insurance policy from
a retail provider
“Insurance against special events is a vital aspect of
any building or short-term insurance policy,” says Keith
Fick, Sasria’s Executive for Insurance Operations. “This
is especially true as Sasria has seen a 54% increase in
claims related to events such as protests and strikes in
the past year alone, as well as a 25% increase in the
severity of these claims.”
“Businesses should have two kinds of special events
cover,” says Fick. “They obviously need to cover the assets
of trade, such as buildings, machinery and vehicles,
but they also need to make sure they’re covered for the
interruption of trade should this occur as a result of

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MARCH 2016 SA Real Estate Investor

political or labour-related events. Being unable to trade
while repairs are being made or essential equipment is
being replaced can sink a business of any size.”

Since the #FeesMustFall
campaign, universities
are now exposed to an
emerging risk of damage
during protest action
He points out that cover for staff who may be
injured in a special event is not, however, provided by
Sasria. This eventuality needs to be allowed for in the
company’s group personal insurance policy, which also
provides cover for damage to or loss of movable property
that may take place under normal circumstances, such as
during a robbery or an electrical fire.
Larger companies and corporations, which have
dedicated Risk Managers, therefore usually purchase
Sasria’s riot wrap product because of the high level of
exposure in South Africa. Since the #FeesMustFall
campaign, universities are also starting to enquire
about this kind of cover, as they are now exposed to an
emerging risk of damage during protest action, which
was not previously the case.
As the upward trend in claims numbers has continued
over the past quarter, Insurance cover
is an absolutely essential add-on for building, vehicle
and valuables insurance policies.
www.reimag.co.za