By Dave Jack, Managing Director of BnB SURE

Two things are certain as we head for December and the holiday season and as we look ahead to next year and the excitement it holds.  Firstly the tourists will be coming and secondly they will be both local and international.

There are many establishments available to these tourists in the form of B&Bs or guesthouses, a self catering units or even holiday homes that have been rented out by the owner.

Each of these carries a huge risk to the owner of the establishment.  Perhaps the largest risk is the liability that could attach to the visit by the tourist.  A bad fall the cause of which can be attributed to the negligence of the owner could mean the loss of everything the owner has ever had.  A foreign tourist issues summons for $1m and that is a lot of Rand. Much more than many “ordinary” South Africans have available to them, to be able to sit down and write out a cheque for (some R8m) and that is before the legal costs come into it, and in this sort of case that could easily amount to another R2m.

Is it only the liability risks that cause a problem?  Not at all.

Make certain that your client has the correct cover to suit his or her needs.  One would not insure, for example, a butcher shop on a policy designed for a florist yet there are literally thousands of B&Bs, guesthouses and holiday homes that are insured on an incorrect policy.  Price often becomes an issue but again a person should not buy a suit of clothing that doesn’t fit simply because it’s cheap!  One of the most expensive things one can buy is cheap insurance.

Many of these types of risks are insured in terms of a personal lines policy and several insurers have already confirmed that if a risk they are insuring on a personal policy is rented out in any way the policy will not respond to a loss.

There are yet others where there is a conventional commercial policy in place that in most cases has very little Liability cover and none of the “specialist cover” the owner would need to have for this type of risk.   More loss of money for the owner.

Different policies in the market have been designed differently and one of these, BnB SURE, has been designed in conjunction with the industry that provides for the “smaller accommodation” type establishment so there is no guessing as to the cover needed.  It’s all there.

So before those tourists, both local and international descend on places to spend that well earned rest over the holiday season, brokers can take care of their clients by getting them the right cover.

BnB SURE