Compendium News

Category: ‘Insurance News’
Buy and Sell Agreements: What Are They and How Do They Work?

If you’ve built up your business with a partner, you’ll know how much you both contribute to the successful running of your company. You’ll also know that losing your partner would have colossal consequences and cause huge problems. It’s natural to want to avoid the thought of your partner falling sick or being hurt, but it’s always wise to prepare for the unexpected – buy and sell agreements will give you one less thing to worry about in the case of a tragedy.
Buy and sell agreements protect you from the financial impact of the loss of a partner. If your partner becomes seriously ill or dies, a buy and sell agreement will promptly provide you with a lump sum of money. This will mean that you can buy their share of their business, and ensure fair compensation to your partner’s family.
Take out a buy and sell agreement with your partner to take the fear out of the future. This legally binding agreement will mean that there is no confusion if the worst happens, providing clarity in a time of distress. It will ensure that your business is able to continue, rather than being put on hold and losing money, or closing permanently. You and your business partner can customise your policy to suit your needs – our experienced brokers will help you decide what cover you need and get the best solution.
A buy and sell agreement will give you immediate funds, so you can buy your partner’s share of the company. With the agreement, you won’t have to go to the bank for an expensive loan, or depend on unwilling investors or family members. A buy and sell assurance policy will help take the pain out of running your business during a crisis, and will provide for your partner’s family too.
Both you and your partner should take out a buy and sell agreement for each other, so you are both protected. This reciprocation will echo the running of your business; creating a fair and equitable solution for you both. You can set the terms for your policy, including retirement, disability, death, or change of ownership shares – one of our brokers will be able to talk you through the possibilities, and make sure you’re absolutely happy.
You can even combine your buy and sell agreement with another policy, such as Key Person Insurance (find out more https://www.cig.co.za/key-person-insurance.aspx), or extend your base policies with a buy and sell agreement. Speak to one of our advisors to discover more about your insurance options.
It’s time to future-proof your business. Get peace of mind now – call our expert brokers at 087 724 9390

Does your business need accidental damage cover?

Running your own business means that no day is ever the same – it’s never boring, but it’s always hard work. You know that you can never predict what’s going to happen, however hard you try. But the unexpected doesn’t have to be an extra stress: you can take take out accidental damage insurance to cover your costs, and give you one less thing to worry about.
Accidental damage cover is a special top-up that can be added to your ordinary policy, ensuring you’re covered for any eventuality. It covers you for unforeseen costs. Depending on the policies you have in place already, accidental damage will provide an extra buffer for any claims you might need to make.
Create a buffer against unexpected damages and costs Accidental damage is especially important to take out if you have several employees: the more people you have working for you, the greater the chance that an accident may occur. You can’t plan for every eventuality, especially when you have more than one employee. If you do employ a workforce, you might want to consider Employer’s Liability Insurance, which will protect you against lawsuits if one of your staff is injured in the workplace.
Your accidental damage policy will cover unintentional breakage or injury to plants, machinery, fixtures, fittings, and stock on your premises: as long as it’s not already covered by another of your insurance policies. For example, if a shelving fixture suddenly breaks, destroying your stock, you would be able to claim for the cost of the fixture and your stock. An accidental damage policy provides a valuable safety-net so those notbargained for bills don’t place a strain on your profits, or eat into your capital.
Call one of our experienced brokers on 087 724 9390 to discuss accidental damage cover and other insurance options, and they’ll share expert advice on the best policies for you.
Be prepared for the unexpected – speak to one of our brokers today.

You keep your most valued possessions in your home, so it’s vital you protect them with home contents cover. If you already have home insurance, you might think your belongings are already covered, but actually this isn’t the case. Read on to find out why it’s essential to have both contents and building insurance.
Home insurance, also known as home-owners insurance or building insurance, covers the structure of your building. As a home-owner, you know the value of the roof over your head, but it’s important to remember that home insurance only covers the bricks-and-mortar elements of your building. This means if your house is damaged by flood, fire, accidental impact, etc, you can claim for the rebuilding costs and any essential fixtures.
Home insurance also covers any outbuildings, security systems, pools, gates and gate motors, patios, walls, driveways, aerials, and many other items. (Ask your broker for full coverage details.) You can claim for the replacement, rebuilding, or repair costs for all the buildings. Make sure when calculating the sum insured that you measure it according to the rebuilding costs rather than the market value, and also factor in demolition costs, professional fees and public authority requirements.
So, if you’re already in possession of home insurance, you might think you’re sorted. However, home insurance actually only covers the building. You therefore need to combine your insurance with home contents insurance, and that way your possessions will be covered too.
Household contents insurance protects your most valuable possessions. We know how sentimental the contents of your home can be, which is why we offer such a detailed and extensive home contents cover (also known as contents insurance cover).
Household contents insurance covers a wide range of items from the contents of your tool shed, garage, maid’s quarters, and expensive jewellery.
As a valued client, your household contents insurance will protect you from the following:
Weather conditions such as wind, rain, lightening, storms, snow, water damage, earthquakes and hail Fires Explosions Burst, leaking, or overflowing pipes and geysers Theft and attempted theft Malicious damage carried out by someone other than you Impact from vehicles, falling trees and aircrafts Also included in your household insurance sum is cover for accidental death, medical and veterinary expenses, trauma and veterinary counselling, and much more.
If you have any more questions or need help with your insurance call us today for a quote: 031 242 6800.

Car Insurance For Older Vehicles

When it comes to buying a new car, the first thing on everyone’s mind is getting car insurance. But is this the case for older cars as well? It seems there are mixed sentiments when it comes to car insurance for older vehicles. We take a look at the ins and outs of insuring your used car.
Do I Really Need Insurance? Let’s cut straight to the chase. It’s a common thought that you don’t have to insure your used car because it’s old. This is actually a misconception.

Think of it this way. Even if your car is falling apart, should that car be involved in accident or get stolen, would you have the cash on hand to buy another car? If you answered no to this question, you definitely need to insure your vehicle. If you answered maybe or even no, you may still want to insure your older vehicle for remuneration purposes.
Let's Talk About Premiums The thing with a used car is that you probably won't have to pay as much for collision and comprehensive cover. At the same time your liability cover may be just as high as it would be if it were a new car.
Your vehicle's history is also vital to the outcome of your insurance premiums as it can influence the insurer's evaluation of your “riskiness.” If you have records of your car's history, bring them up. Advise insurers if the car was ever in an accident, was rebuilt or has had any major repairs done. Your insurer will find this information very important to your overall assessment.
This doesn’t mean that you will definitely get cheaper insurance for your older vehicle. Consider the fact that older car parts may be more difficult to locate because they are no longer in production. When it takes longer to find a replacement part or the part is more costly, the overall cost to repair the vehicle increases. The hassle of finding parts and rising labour fees mean that even as the car gets older, your insurance premium may not decrease.
Trying to Keep Insurance Costs Low The most obvious tactic is to drive safely. This may be more difficult than it sounds, especially considering the high volume of car accidents on our roads. But driving safely will not only save your life, it will also prevent accidents which can lead to claiming from your insurance, which can then increase your premium.

Driving safely also involves adhering to the speed limit, which helps avoid speeding tickets. Then there’s mileage! A car’s kryptonite is its’ mileage. The higher the mileage, the lower the car’s value. Studies also show that, as you increase the number of miles you drive, you increase your risk for accidents and injuries.
Got any questions about car insurance, how it works and what is covered, call one of our dedicated Compendium brokers on 031 242 6800 or visit us at www.cig.co.za

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