Bernedette Konig, PSG Insure Technical Specialist

A crucial role in the global economy is fulfilled by Small, Medium, and Micro Enterprises (SMMEs), as this sector contributes significantly to job creation, innovation and overall economic development. However, these businesses continue to face a range of challenges, which include economic pressures, technological advancement and adoption, energy crisis, access to funding, supply chain issues and many more that may cause financial and operational risks.
The importance of insurance for SMMEs
SMMEs often face a unique set of risks and challenges that differ from those encountered by their larger corporation counterparts. These include financial vulnerability, operational interruptions, market volatility and even the personal risks that come with being a business owner in South Africa. To ensure long-term sustainability, small business owners need to implement risk management strategies that mitigate potential disruptions. This is where insurance plays a key role.
The insurance industry offers a wide range of products and services to address the specific needs of SMMEs. These products can be put together to meet the unique demands of different sectors and help businesses address their most pressing challenges.
Property and asset insurance
This type of insurance protects businesses from the risk of property damage or loss due to events like fire, burglary, storm damages or riots. Many invest heavily into their physical assets, which makes adequate coverage crucial for protecting these investments. Asset insurance also extends to machinery, stock and equipment, critical to the daily operations of the business.

Take the admin out of premium collections
Providing collection and payment services to the South African insurance industry.
- User friendly collections System
- Dedicated service consultant
- Collect directly into Insurer Bank Accounts
- Wide variety of reporting services
An authorised Financial Services Provider – FSP 50552
Business interruption insurance
Many small businesses operate with limited resources and may lack the financial safety net to survive extended periods of downtime due to an unforeseen, yet insurable event. Business interruption insurance helps to maintain operational continuity with unexpected disruptions. This cover will ensure that small businesses can meet their financial obligations, pay employees and maintain their reputation while recovering from an insurable event.
Liability insurance
Product liability, professional indemnity, and public liability insurance can help protect against the cost of legal claims. Without insurance, the financial implications of such claims could threaten the survival of a small business. By offering peace of mind against these risks, insurance enables small business owners to focus on growth and innovation rather than being bogged down by the potential cost of legal action.
Motor insurance
This coverage protects the company’s vehicles from accidents, theft or damage, which could otherwise disrupt operations. Additionally, cover is also available for credit shortfall, which can be taken as an extension to safeguard the business for the cost between the outstanding hire purchase amount and the retail value of the vehicle in case of a total loss.
Professional indemnity insurance
For service-based small businesses such as consultants, IT professionals or accountants, professional indemnity insurance is essential. This coverage protects against claims of negligence, errors or omissions in the professional services offered, which could lead to costly legal action.
Opportunities for insurance advisers
Insurance advisers have a significant opportunity to help South African small businesses to navigate the complex world of insurance and identify the right products for their specific needs. By offering specific solutions and providing expert advice, advisers can establish long-term relationships, positioning themselves as trusted partners in business growth and risk management.
Emerging trends
As new risks emerge —such as cyber threats, climate change and regulatory changes — there are increasing opportunities for insurance advisers to help businesses address these challenges. Staying informed about new insurance products and evolving risks gives reputable and trusted advisers an edge in offering relevant and timely solutions to clients.
Ongoing support and claims assistance
Professional insurance advisers have the technical knowledge, skills and expertise to ensure that suitable advice is provided and that the claims process is as seamless as possible to avoid unnecessary delays that may impact business operations.
The insurance industry has a role to play in supporting the sustainability of the SMME sector. With the assistance of a trusted insurance adviser, SMME’s will have crucial financial protection by transferring the risk of an insurable event to the insurance company.