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Business continuity after
business interruption
T
ourism continues to grow from strength to strength globally,
and the South African economy too relies heavily on local
and international tourism.
Many tourists visit Cape Town, Mpumalanga and other attractions
annually. It is therefore safe to say that tourism is the reason for the
continued expansion of the V&A Waterfront in Cape Town, the estab-
lishment of new game farms and nature reserves, and the consider-
able growth in the numbers of guest houses. New types of leisure
activities (e.g. driving 4x4 routes, gliding, etc.) are increasing sig-
nificantly, which provide a demand for new accommodation facili-
ties and other types of entertainment in a specific area/town.
In light of these developments, Santam positions itself in the grow-
ing market by providing sufficient short term insurance cover to all
relevant businesses.
Santam offers tailor made solutions for boutique and country ho-
tels, guest-houses and bed and breakfast facilities, lodges, cottages,
self-catering accommodation, caravan parks and resorts, timeshare
facilities, game farms, game lodges, sport clubs, golf courses
and driving ranges, health centres and spas, conference facilities,
putt-putt facilities, privately owned restaurants only, theatres and art
galleries.
But what if a loss occurs?
Business Interruption cover is an essential addition to property
damage insurance. Few, if any, business operations that experience
damage by fire or other contingencies to productive assets, would
not suffer financially either through loss of trade or additional ex-
penditure during the immediate period following such damage.
Such financial losses might arise from the non-fulfilment of orders,
the unavoidable breaking of contracts, losing clients to competitors,
the inability to attract new customers, the necessity to meet continu-
ing expenses from reduced earnings, additional expenditure related
to the hire of temporary premises, plant and other facilities, addi-
tional expenditure to meet the costs of overtime, express freight and
similar expediting expenses, and additional expenditure to purchase
goods from competitors in order to meet existing orders – to name
but a few.
A Business Interruption policy is designed to provide the necessary
funding to enable a business to achieve the financial results which
would otherwise have been achieved had the damage not occurred.
THANDEKA BEPETE,
Santam Agri
Product information
The establishment of new game farms, nature reserves and
guest houses are increasing significantly.
21
May 2018
FOCUS
Money matters & Financial services
Mini-
Finansiële krisisse
Verminder uitgawes
Die uitgawes wat aangegaan word, moet lei na verhoogde produksie,
effektiwiteit en doeltreffendheid. Dink twee keer voordat uitgawes
aangegaan word. Goedkoop koop is gewoonlik duurkoop. Dra sorg
dat die insette aangewend die taak in die eerste rondte kan afhandel.
Onthou: Wanneer iets oor gedoen word, lei dit tot hoër kostes en ‘n
verlaging aan die inkomstekant.
Uitgawes is nodig om inkomste te genereer. Bepaal wat met die
winste gaan gebeur as die uitgawes verminder word: As die winste
verhoog, verminder die kostes en indien die winste nie verhoog nie,
moet die kostes nie verminder nie.
Soms beplan produsente om die beskikbare krediet te rek om
sodoende meer te kan plant. Pasop, dit is gewoonlik nie ‘n voordelige
plan nie. Vaste en oorhoofse koste moet versigtig bestuur word.
Bepaal wat werklik nodig is en sny die ander kostes drasties.
Versekering moet ook deeglik ondersoek en herbeplan word: Stel
vas hoe dieselfde voordele goedkoper bekom kan word.
Dit is nie ‘n skande om hulp te soek nie. Klop aan by finansierders,
voorligters en konsultante om raad in te win en jou te ondersteun ten
einde die spesifieke probleem aan te spreek.
Hierdie buitestanders sien dalk geleenthede en bedreigings in jou
besigheid raak wat jy telkemale miskyk. Hulle het dalk ook ‘n model
waarmee jy jou berekening in detail kan doen en wat ‘n aansienlike
bydrae kan lewer.
Navrae oor die tema kan aan Pietman Botha by 082 759 2991 gerig
word.