With the recent implementation of scheduled power outages, South African home and business owners need to implement comprehensive risk management solutions that will safeguard their assets during load shedding effected months. Through competent insurance and risk education, home and business owners can gain knowledge on how to effectively manage the possible consequences to their assets as well as stock losses that may occur due to an unstable power supply. There are a number of things to consider when offering a client advice on best-practice and stringent risk management policies that will avoid losses for their homes and businesses.
Asset Damage Risk Management Solutions
It is a known fact that the power supply in South Africa is unstable. Surges in power can cause damage to your client’s assets, which means that their expensive electrical equipment, machinery and the like, used in their business and home, are susceptible to the unstable fluctuations caused by load shedding. Assets can be protected by making use of high-quality surge protection equipment and a commercial or home insurance policy which covers asset loss caused by electrical damage.
As load shedding may affect visibility on your clients’ business premises, they will need to be aware of the physical risks that can be associated with a power failure. It is therefore advisable that businesses have sound safety measures in place, as well as adequate liability policies should claims of negligence occur. Risk management solutions for such incidents include ensuring that they have back-up power that will kick-in when the power fails.
Due to the nature of certain products, stock may need to be stored with the use of electricity. A prolonged period without power can easily result in stock losses. Most insurance policies do not provide cover for deterioration of stock unless the right cover options have been selected.
For comprehensive business and home risk management solutions, contact us at Assurant Risk Consultants so we can help you craft the perfect short-term insurance policy to offer your client the right coverage for their unique requirements.