Do Small Businesses Need Business Car Insurance?

Starting a small business — and keeping it afloat — comes with a steep learning curve. Ask any small business owner if they would go back in time and do things differently, and many will likely have a list of corrections they'd want to make. As someone considering starting a small business, you can benefit from learning some of these lessons to smooth your path towards success. Here are some insights about having a small business in South Africa, and how your Business Car Insurance might affect your choices.

The top 3 types of small businesses succeeding in South Africa right now

It can be challenging starting and growing a small business in any economic climate, but South Africa definitely takes the cake when it comes to complications you'll have to manage. There are ways to improve your chances of success. One way is to enter a field that's attractive to investors and fast-growing. According to a recent report on the state of the small and growing business sector in South Africa, here are the top four industries likely to succeed.

1. Health and wellness services

The focus on health and well-being is on the rise across South Africa, creating opportunities for small businesses in areas like fitness studios, wellness holidays, life coaching services, and healthcare products. 

2. Tourism and hospitality

It’s no surprise South Africa’s tourism and hospitality industry continues to grow. With our gorgeous landscapes and cultural diversity, there’s much to see and do. Small businesses offering distinctive experiences, like eco-friendly adventures, boutique stays and cultural tours, are gaining business via both local and international tourism. 

3. E-Commerce and online retail

More and more people can access the internet via their mobile phones, making online sales a suitable space for small businesses. You can sell goods and items produced locally or offer the same items as large lone retailers but at a much more affordable price. Dropshipping companies allow you to sell products without holding stock and ordering them when necessary.

3 Reasons why you need Commercial Vehicle Insurance

For some, it's possible to operate a small business online without stepping foot outside your home. Before you assume this applies to you, consider your business model. If you need to travel for business or transport goods, you’ll likely need a commercial vehicle and Business Car Insuraa nce. This could be for several reasons:

1. Client and vendor appointments

Even if you only use your car for work now and then — like meeting clients, attending industry events, or picking up inventory — personal vehicle insurance might have certain cover limitations during these trips. Business Vehicle Insurance fills that gap, protecting you from high expenses if something unexpected happens on the roads.

2. Cover for damage to the vehicle or theft

If employees use your business vehicle for work-related tasks — like deliveries or client visits — your business vehicle is at risk for damage or theft. Commercial Vehicle Insurance provides essential coverage, protecting you from significant financial losses that could result from an on-the-job incident.

3. Safeguarding business continuity

If your business relies on a vehicle for daily operations, an accident can bring everything to a standstill. Many Business Car Insurance policies offer coverage for rental vehicles so you can keep things going while your car is being repaired.

Types of businesses that benefit from Business Car Insurance

If you're still unsure if you might need Business Vehicle Insurance, consider if your small business idea falls into any of the below categories.

●  Services that require short or long-distance travel: If your business involves travel, you will need a car. This can apply to you if you are starting a business as an event planner, independent caterer, florist, or other small business. 

●  Services that take place on location: You might offer a service that takes place with the customer or on their property. This can range from providing bridal makeup at wedding venues to mobile beauty and wellness services.  

●  Freelance team member: You may offer your services as a skilled professional who can supplement or join an existing team temporarily during busy times or for special projects. This will require you to meet the team where they are located. An example of this can be a photographer joining a small videography team to assist them in filming an event in a massive stadium.

Get Car Insurance quotes from 1st for Women

Starting a business is high risk — but it's also high reward. While deciding on an industry and its pros and cons can take time, it can also show you gaps that require protection. Equipping yourself with Business Car Insurance is worth it, and 1st for Women is happy to help you choose the right cover for your small business needs. Contact us today for your Car Insurance quotes.