Cape Town – When taking out short term insurance, look at what you cannot afford to live without, Sharon Paterson, CEO of Infiniti Online, told Fin24 on Monday.
“Times are tough in the South African economy at the moment and people don’t have money. The trend we then see in the insurance industry is that they sit back and look at insuring the things they think they might lose, like a cell phone,” explained Paterson.
“However, if you do not have a lot of money, I would advise that you should actually look at what you cannot afford to live without. What if you do not have your house insured and it burns down? What if your dog runs in front of a Lamborghini and you do not have insurance? What if a fire started by your gardener to burn rubbish ends up burning down your neighbour’s house?”
Another trend seen by Paterson is that people are certainly shopping around. They look carefully at how they spend the money they do have available for insurance.
“You absolutely must have some form of insurance. Unless you are extremely wealthy you cannot afford to pay out if someone sues you. You can, for instance, be liable for damage to someone’s property without having done something deliberately,” said Paterson.
“Ensure your house and its contents against fire and flooding. Ensure your car at least for third party claims. Get good public liability cover.”
For a business she also said insurance against fire, floods, third party and contingency cover (for instance if staff members drive somewhere in their own car on business) should be taken out. One can also insure the business against interruption of operations that causes a decreasing of profit as a result of for example a fire, flood or burglary.
“To be uninsured is a false economy,” cautioned Paterson.