Latest News

Welcome to the home of ESBrokers. We are a leading specialist insurance provider, providing specialised insurance solutions for very niche markets.

Loss of Profits due to Prevention of access to your trading premises


As Business Owners we are often faced with interferences with our business and some of these interruptions can result in a Loss of Profits, leaking thousands of Rands, if not insured correctly.

One extension specifically is often over looked and that is Prevention of access.

What would happen to the clients business premiums if ( within a 10 km radius) there is destruction of or damage to, which shall prevent or hinder the use of the premises or prevent access, whether the premises or property of the insured  be damaged or not?

Here are some examples of what could happen in this scenario:
*  what if a bridge that belongs to a local authority, within a radius of 10 kilometers washes away preventing access in or out to your business 
* On in this case the insured runs a shop in a shopping centre with only one access door. As a result of a fire near the entrance, and consequent damage to the structure, it has become too dangerous for use by the public. The centre therefore has to be closed for two weeks. 
* Or the insured runs a factory in an industrial area with only one access route. Access is controlled by security guards. An underground water pipe bursts right next to the access control point. It takes the local authority a week to repair the pipe and the access route.



Now you can go one step further and also select  Prevention of access – extended cover

Again the radius has to be within  a 10 km radius of the premises. This point refers only to the premises. This therefore means any premises where the insured's items or goods are temporarily found, and access thereto is prevented, for example the premises of suppliers or clients.

Ask your Broker to make sure this extension is included. Remember if it is not stated on the schedule to be included don’t assume it is. This extensions must be requested and an additional premium is charged.

For any assistance regarding the information above please feel free to phone our office on 031-5021922 or leave your details on our website www.esbrokers.co.za.

Article written by Andrew Ensor-Smith (Director of ES Brokers)

Mauritius claims compensation from insurance company after oil leak



The MV Wakashio, a bulk carrier ship that recently ran aground off the southeast coast of Mauritius, can be seen from the coast of Mauritius, Sunday Aug. 16, 2020. (AP Photo/ Sumeet Mudhoo-L’express Maurice)


Mauritius will claim financial compensation from the insurance company of a Japanese vessel for the extensive environmental damages caused by a recent oil spill. The country announced the decision Friday following the arrest of the ship’s captain and first mate, who were charged with endangering safe navigation.

The vessel crashed into a coral reef off the coast of the nation last month, spilling tons of oil into the water.

According to reports, the Mauritian Coast Guard had advised the ship against taking the route prior to the spill, but to no avail.

“There are environmental damages. This, for sure, the state is going to claim compensation. There has been an impact. Take the reef, for example, the physical damage to the reef, the psychological damage. The lagoon, the livelihood of people living in the area whose livelihood depends on the sea, like fishes, etc. So there is a compensation part of it. All this will be processed and claimed from the government.” – Khemraj Servansing, Mauritius Police Commissioner

This satellite photo provided Monday Aug. 17, 2020 by 2020 Planet Labs, Inc. shows the MV Wakashio, a bulk carrier ship that recently ran aground off the southeast coast of Mauritius, Saturday Aug.15 2020. ( 2020 Planet Labs, Inc via AP)


The country will claim compensation for losses in the tourism and fishing sectors, as well as for the ecological damages and environmental pollution.


ES Brokers would like to congratulate our client Drizit Environmental for being part in the clean up operation in Mauritius and helping with the Environmental pollution control.

If you would like to help save Mauritius from this Ecological Disaster you can donate money by clicking on the following link: 
https://www.facebook.com/donate/591206865097535/


Article courtesy of one Amercis News Network

Citizens repair potholed roads that South African municipality cannot manage



Taxi drivers, truck drivers and motorists complain that the R61 connecting Flagstaff and Lusikisiki in the Eastern Cape is potholed and getting worse. With potholes on both lanes, motorists say it is like manoeuvring through a minefield.

Two unemployed young men saw an opportunity in this. They started filling the potholes and asking passing motorists for a donation.

“The municipality was not showing any indication of fixing the roads. We then decided to help the people of Lusikisiki and ourselves,” says Siphiwe Mlonji.

Mlonji and Lindani Mbotyeni, both 26, from Cabekwane location, first met in Durban two years ago while looking for work and they have been friends ever since.

Neither of them have any formal qualifications, Mlonji having dropped out of school in grade 9, and Mbotyeni in grade 10, because of a lack of money at home.

They taught themselves to paint, plaster and build.

They find damaged cement bags in local hardware stores, buying a 50kg bag for R75, and use them to fill potholes.

Mlonji says they barely survive on what they earn.

“We are reliant on the kindness of the strangers who drive past while we fill the potholes. We appreciate every cent they give us. No one at home is employed, so with this money we are able to feed our families,” says Mbotyeni.

They used to collect scrap metal for recycling, but that ended with the Covid-19 lockdown.

“If we get permanent jobs we will be able to do more for our families. I will even be able to sleep at night and not have to wonder what we are going to eat tomorrow,” says Mlonji.

Ingquza Hill Local Municipality Mayor Bambezakhe Goya applauded their efforts. “We appreciate the efforts of these young men to help fix an obvious problem. But we do not encourage such actions because they put their lives in danger when doing this. They don’t have the necessary signage to alert motorists that they are working on the road,” he said.

Goya said the municipality was struggling to repair the roads because of budget constraints and under-performing construction companies.


“We decided to take a phased approach,” he said. “In Lusikisiki we’re constructing paving because we saw that it is less expensive compared to tarring a road. That’s what our budget allows for right now.”

“In Flagstaff we hired a service provider who struggled. After expressing our concerns we subsequently fired the company. We hired another that worked but after a while they decided that they were not up to the task.”

Eastern Cape Department of Transport spokesperson Khuselwa Rantjie said the department was aware of the condition of the R61 and had set aside a budget to fix it.

“The project is currently being evaluated for the award of the contractor and the plan is to have it started not later by the month of September. In the interim, the departmental in-house teams are maintaining the road to improve its safety,” said Rantjie.

But Border Alliance Taxi Association rank manager Thembela Dumisa said, “We have suffered for years driving on these terrible roads, and for years we have been promised that the roads would be repaired. That has not happened. In the meantime our vehicles are being damaged by these potholes. What’s worse is that lives are being put in danger because driving on these roads is risky.”

GroundUp could not get details from the municipality on what budget had been set aside for the rehabilitation of the 92 kilometre stretch of road.

At ES Brokers we have no influence on our road conditions but we can make an impact on your car insurance. For a no obligation free quote please visit our website on www.esbrokers.co.za.


Article courtesy of BusinessTech, published by Groundup

 

Are employers responsible for work-from-home costs?



If you find yourself in a position where you have to work from home, you may quickly realise you’re spending more on data, coffee, and stationery than you were before.

If your employer covered these costs while you were working from the office, then you may wonder whether they ought to continue covering these costs at your home. We found out more.

 

Certain costs may be covered – depending on the company

According to Sandra Maritz, legislation business consultant at CRS Technologies, as per the Basic Conditions of Employment Act (BCEA), an employer is obliged to provide an employee with the tools needed to perform their duties, such as a computer, internet connection or data, and stationery, where applicable.

“An employer may expect an employee to provide proof of the data capacity on their devices, as well as proof of payment for data to qualify for a reimbursement. Where the internet connection or data isn’t solely used for business purposes, the cost should be calculated and shared between the employer and the employee,” says Maritz.

She explains that where the working conditions change and an employee is expected to work from home, the same conditions will apply. However, she says that an employer is not obliged to provide an employee with a subsidy for coffee, tea, cleaning materials, or a telephone subsidy.

Deon Smit, exco member at the South African Reward Association, believes that employers are not legally obliged to cover home expenses. He explains that employees are saving on, for example, fuel and vehicle wear and tear, as well as commuting time.

“Employers can assist in negotiating better data packages for employees as a possible way to assist with any additional financial burden they might be occurring which they didn't previously. However, coffee and electricity are more incidental costs and they’re influenced by too many factors to be considered by an employer for refunding,” says Smit.

“Employees can request assistance from their employers if they feel that their financial situation is negatively impacted due to expenses related directly to work but this will be up to each employer to consider the motivation as well as the viability,” he adds.



Where is the line between home and office costs?

 

Smit points out that every employer is in a different situation, and whether they decide to assist employees with work-from-home expenses will depend on what they can provide for the amount of value they get in return.

“Offices are open again in most cases and employees can access most office resources. Employers have also taken strain during this time and employees are not in a position to make unreasonable demands,” says Smit.

He believes that employers have already been very accommodating in assisting with data, being flexible with work schedules, and providing additional tools to be productive during the lockdown.

Maritz says that what a company is willing to cover will depend on the company itself.

“I think it is safe to say that a company may be willing to pay for the total cost of the data or internet connection cost – assuming this relates to an employee’s job responsibilities. An employer may also be willing to pay an allowance for coffee or tea, or cleaning materials. However, it will be difficult to determine the percentage used for the employee only,” says Maritz.

She believes it’s very unlikely that an employer will be willing to pay a percentage of the rent or house bond or electricity, especially in the current situation where employees are working from home which may or may not be a permanent arrangement.



What can you claim from SARS?

According to Maritz, the South African Revenue Service (SARS) makes provision for home office expenses as a tax deduction under the section “other expenses” of an individual’s annual tax return.

However, she stresses that this deduction is only allowed under certain specific conditions:

· An employer must allow or expect an employee to work from home. An employee must also spend more than 50% of their working hours working from home. In other words, the employee must have performed their duties for a minimum period of 6 months in a tax year working from home.

· Most importantly, to qualify for a tax deduction, the employee must have an area of their home exclusively used and set up for this purpose. For example, employees who work in their dining room, lounge, bedroom, or kitchen would not qualify.

“The employee must have a separate office or an area of their home which is used specifically for the employee’s work. The area must also be specifically equipped for the employee’s trade. In other words, it must be specially fitted with the relevant instruments, tools, and equipment required for the employee to perform his or her work,” says Maritz.

If these criteria are met, you can claim the following as a tax deduction:

· Rent

· Interest on bond

· Repairs to the premises

· Rates and taxes

· Cleaning

· Internet

· Wear and tear

· All other expenses relating to an individual’s house only

“To calculate the home office deduction, one needs to work out the total square meterage of the home office in relation to the total square meterage of the house or apartment, and then convert this to a percentage,” says Maritz.

“You then apply this percentage to the home office expenditure in order to calculate the portion which is deductible,” she explains.


Insuring your home office or your Household contents is as simple as leaving your details on our website www.esbrokers.co.za.



Article written by Isabelle Coetzee as it features in just money

OPINION | Why driving a lowered car is safer than you might think



Motorists with lowered vehicles are generally safer drivers.

• Lowered cars will attract the attention of law officials.

• There are pros and cons to lowering your vehicle's ride height.

If there's one thing that draws the attention of local law enforcement officers, it's lowered vehicles.

In recent years, there has been uproar among young motorists being pulled over or fined for having vehicle modifications or alterations done to their cars.

Stance or speed

Everything from dark tinted windows, aftermarket LED lights, bigger wheels, and specific performance upgrades can pose a problem to yourself, and attract the attention of traffic officials due to unlawful modifications.

There have been stories of motorists being pulled over by traffic officials and had their license discs taken because their cars were not deemed roadworthy due to the lowered stance.



There is a misaligned conception that all lowered cars are street racers, but in actual fact, it is the exact opposite. A car looks much better when it sits lower to the ground, and it is for this reason that speeding, and getting caught by a camera, can never be an issue.

Here's why: if anything, drivers with lowered vehicles are more worried about dodging potholes, navigating steep speed bumps, or fear scraping the front spoiler on uneven road surfaces. Speed mitigates this notion entirely.



Having friends in both the performance and stance culture, it is either one or the other and never both, unless you have bottomless pockets.

With those that are into speed, most money is spent on either making a car faster, or fixing something that broke. And, from personal experience, mechanical parts are never cheap.

Car modifications: What the law says in SA

The stance guys, on the other hand, pride themselves on how a car looks and obviously how low it is. Lowering a vehicle can be done in one of three ways - fitting a lowering kit, coil-overs, or air-ride suspension.

Air-ride suspension is the more desirable out of the bunch as drivers can adjust the ride height depending on the road surface with the touch of a button.

Cutting or heating a car's springs is not advisable as its best to fit a reliable setup the first time around. Remember, you are now altering the dynamics of how a car handles and behaves on the road.



The good and the bad

Just like with most things in life, there are pros and cons, and the lowering of a vehicle is not exempt from this. Insight from Carsdirect says that with a lowered suspension, there's less air going underneath the vehicle, and this can create a better outcome for wind drag on a car.

That's why some sportier models sit a bit lower to the ground. In general, having the vehicle so low to the ground can increase the grip of the tyres on the road.

With that said, there are a number of disadvantages as well. Because a car now sits lower to the ground, parts in close contact with the tar become a risk.

Components like the oil sump and exhaust system can take a hit if you misjudge a dipping road surface which can result in the car bouncing and hitting the ground hard when a vehicle is not originally designed with this in mind. Accelerated tyre wear can also occur because of a change in ride height, together with the fitment of bigger aftermarket wheels.

The art of lowering a vehicle will never go away because it forms such a big part of South Africa's car scene.

For insurance quotes on your low ride , high ride or any ride please feel free to contact our office on 031-5021922 or visit our website www.esbrokers.co.za



Article and pictures courtesy of  wheels24 (motoring news first).
Disclaimer: Wheels24 encourages freedom of speech and the expression of diverse views. The views of contributors/columnists published on Wheels24 are therefore their own and do not necessarily represent the views of News24 or Wheels24

Consumer Watch: Is instant insurance less hassle or more trouble?



 It’s innovative, cheaper, data-driven and rewards good driving behaviour. There’s no paperwork, no broker and no call centre agents asking exasperating questions. One insurer offers cover pause, another ‘pay per k’, while another’s instant sign-up via super-bot promises to get you cover in two minutes, and payout within seconds.

But as insurers rush headlong into technology to keep ahead of their competitors, consumers have been warned that on-demand insurance apps can be risky, especially if the applications process has not been completed to the insurer’s exact specifications.

Ayanda Mazwi, senior assistant at the Ombudsman for Short-term Insurance, says her office has noted complaints about app-based insurance, where consumers have been told their policies were invalid because they failed to upload videos or images of their insured items correctly. And customers allege that their insurers failed to tell them that there was an issue with their cover, despite taking premiums every month.

She said while technology is driving innovation in the sector, customers need to understand what they are letting themselves in for - and the value they are getting.


“These apps place far too much responsibility on the insured, so if customers don’t upload their images exactly the way they are asked to do, or if their device isn’t compatible with the system, then they are told they are responsible for their own cover,” Mazwi said.

It’s important to understand what kind of support the insurer is offering, too, so if there are compatibility issues, the consumer must be alerted and offered an alternative solution, such as being able to take a vehicle for a physical assessment or to complete the application manually.

Mazwi said insurers are obliged to inform customers if there is a problem, but in two recent cases that her office was dealing with, that did not happen.

“In terms of treating customers fairly, insurers should provide customers with an alternative. They need to take responsibility to verify that everything is in order: the insurer also has an obligation to inform the customer.”

Clifford Little’s experience with One Plan, underwritten by Bryte Insurance, serves as a warning about selfies.

He signed up with One Plan through their call centre and was required to complete the application process by taking pictures of his car.




The One Plan website promises that getting insurance cover is as simple as taking a selfie. It also promises no vehicle inspection: “Simply snap a pic of your car, upload to the app and get it covered”.

Customers are told they can increase and decrease their cover, “choose how much you want to pay on the One Plan app”, where you can manage your profile and premium from the palm of your hand. There’s zero paperwork, so apparently “zero hassle”.

Little said on August 10, his brother was involved in a “hit and run” crash while driving his car. Little, who was notified within minutes of the incident, rushed to the scene, where he said the vehicle was undriveable.

“I opened up my email application on my phone looking for the email I received from the insurer with the policy number etc, to look for an emergency contact number I can call them.”

This is where things went south: Not only did the provided emergency number not connect (they were apparently closed due to Women’s Day), but he had to Google Bryte’s contact number to speak to a consultant.

“I explained to her my frustrating situation and gave her my policy number. She did her routine checks and authorised a tow truck to be dispatched to the scene.”



The tow truck arrived, took the vehicle to a storage yard 5km away for an assessment, and the following morning, Little logged the incident with the police to get a case number.

When he called the One Plan claims department, he was told his claim would be rejected because the “images weren’t uploaded”.

Little said he had assumed since the images were “pending verification”, his insurance was in place, and a premium was deducted.

The following day though, the manager informed him that the policy was, in fact, inactive because they never received the images.

Deciding the damage could be easily and cheaply repaired, his brother decided to collect the car from the yard, only to be given a bill of R12 000.

“I completely lost it,” Little said. “The repair costs on the vehicle, R6 000, is not even close to that amount they are charging for towing. How do you dispatch a towing company knowing the customer in question is not covered?”

Don’t expect an emergency call centre agent to verify your insurance cover: Most of these call centres are outsourced, so they do not necessarily have access to customer details.

Bryte though said the policy was only incepted on July 6, 2020, on condition that they receive the first payment and that all the images were uploaded - and validated - by the team.

A spokesperson said while the premium was paid, the images weren’t.

“Our partner, One Plan, did follow up with the customer for the images on six occasions from July 3, 2020, to August 7, 2020, however, had not received these at the time of the incident. The policyholder was made aware that the policy validation was pending, and this meant that they weren’t covered.”

Ordinarily, any claims related to the vehicle would be invalid.

However, upon reviewing the case, they determined that “due to an unfortunate oversight, the service was provided by a Bryte approved agent, (and) as such - without admitting liability - Bryte, hereby, confirms that it will cover the costs - on a full and final basis - related to towing, storage and the urgent release of the vehicle.”


For advice and assistance with your car insurance please contact our office on 031-5021922 or visit our website www.esbrokers.co.za.

 



Article courtesy of Consumer watch written by Georgina Crouth

Disclaimer: The information provided in this Blog is as it appears in iol.co.za and is not intended to call out or offend the parties concerned. The intended purpose is for educating the public

What is General Liability Insurance



Accidents happen quite often in life, and although most of the time, they are far from our fault, the outcome can affect us in ways that cause financial or even worse, physical harm.
Since we live in a modern age where human rights are the number one priority in almost every country, we have to be very careful with the things we do in life.

Who would’ve guessed that running a business and selling products to other people can put you behind bars if, by mistake, one of your customers ended up mentally or physically damaged by what you put your name behind?

Let’s say that you’re running a business that earns through the manufacturing of toys. You clearly state on all of your products that they’re not meant, clearly, for use that’s not under the surveillance of an older person. Yet, a child still manages to get hurt by either poking themselves with a sharp side or in a worst-case scenario, swallowing one of the smaller parts. It might sound like we’re going a bit “too much” with negativity, but things like these happen on the regular, and uninsured companies are often closed because of it.

In today’s article, we’ll talk about General Liability Insurance and how it can help you prevent some of the events that we just mentioned above. If you’re looking to learn some more on this topic, you’re more than welcome to keep on reading until the end of this article. Let’s take a look.

What is General Liability Insurance?

By definition, General Liability Insurance is the type of insurance that will help you prevent suffering from financial damage and lawsuits in case one of your customers somehow gets damaged by your products, services, or operations. It is considered mandatory for every business that’s a bit larger and operates for a long time in the corporate world.

You’re probably wondering what you as a business-owner have to do with the fact that some of your employees were not careful, or your customers didn’t follow the instructions mindfully enough. It’s quite a common question to ask, but unfortunately, the answer will surprise you.

You, as the owner of the business, can face a lawsuit if any of these unfortunate events happen throughout your career, which is why we feel like General Liability Insurance is something that you must have to be secure from the legal aspect.

How much does it cost?

Unfortunately, we cannot tell you exactly how much a monthly rate for General Liability Insurance would be in your case, simply because this varies depending on your living location and the price of the company that you’re willing to sign a contract along. Numerous other factors can impact the price as well, but we can give you a rough estimate so you can get a blurry picture of how large of a cost this can be. We do understand the importance of managing your finances properly, as it is a crucial thing to do if you want your business to improve and progress.

·       The average price of General Liability Insurance starts at around R75 per month depending on the risk.

Once again, these prices will vary depending on numerous factors, but if you are determined to learn some more in-detail about General Liability Insurance, you can visit our website www.esbrokers.co.za. Common sense leads us to believe larger businesses get charged a bit more. But, that’s also accompanied by the thought that they’ll turn to highly-reputable companies, which automatically makes the price a bit higher on the scale. You should do a phone call and ask for a specific answer regarding your case.

Against what kind of accidents do I need this?



We mentioned a couple of physical injuries in our introduction part of this article, but we feel like we need to remind you that a customer can sue you even if the damage is not that “physical.” Usually, an unsatisfied customer can file a lawsuit claiming that some of your actions caused them psychological damage, trauma, or just a form of disturbance. Of course, these scenarios are a bit rarer, but they do happen, and you in the role of a business owner should prepare for them. Professional mistakes also fall into this category.

At what point of my career should I insure?



If you are the owner of a “businesses prone to accidents,” we suggest that you get a General Liability Insurance contract as early as possible. Accidents usually catch us off-guard, but once they do happen, you can get in a lot of trouble unless you have protection against the law itself.

In places such as the United States of America, consumers have a lot of rights, and it’s not rare to see them winning in court against a business perceived as a “Titan” in the industry. One of the most notable examples is the RedBull case in which a consumer managed to win millions from the world-famous brand by claiming that their energy drink “didn’t give him wings,” as stated in their slogan.

Why you shouldn’t save up on this investment



It’s like every CEO to do everything in their power to cut costs and maximize profit. After all, that’s the sole purpose of businesses. However, some expenses just cannot be ignored, and it’s for the greater good of the company to sort them out as early as possible. We feel like signing a General Liability Insurance Contract with a reputable company is something that cannot be insignificant, and it’s one of the first things that you should pay for upon taking care of the essentials, assuming that this is not essential by itself.

Conclusion

Insurance in 2020 happens to be a cost that many people consider unimportant until an accident takes place, and they quickly learn how crucial it is. In today’s article, we gave our best to assure you that a General Liability Insurance Contract can be a real life-saver in case you ever get in trouble with the law. The customer is always right, but mistakes happen every single day, and only one of them shouldn’t be a deciding factor on whether your business gets closed or not.

For any assistance or advice on Public Liability Insurance please phone our office on
031-5021922 or visit our website www.esbrokers.co.za.



 Image source:

* ehealthinsurance.com
* howtostartanllc.com
* hortica.com
* quotacy.com
* ngcareers.com
Article featured in Business – the message Global by Henri Hoff

Risks you’d rather direct elsewhere, but can’t

Directors and Officers (D&Os) of companies face a lot of responsibility. The game has changed in light of Covid-19, with many new risks arising.


Landscape for loss

Many jobs have been lost due to the economic fall-out we’re facing. Even though a lot of this has been unavoidable, a disgruntled former employee could decide their process of termination wasn’t fair. They could allege that your planning in the crisis was unsatisfactory, and that this negligence was actually the root cause of the company having to downsize the workforce.

As you may have to retrench or reduce salaries, litigation can come your way. In terms of the companies act, stakeholders may try to recover any losses and could even seek remuneration from a D&O. 

D&Os must also have awareness about cyber risk as we continue to balance the working-from-home revolution. It is their responsibility to consider this when making the call to work remotely or not. 

Any new risks on the horizon that could affect the business should also be communicated to shareholders. It’s essential to articulate how a cyber-related mistake can impact your business, as a key example.



Here are FIVE more ways to mitigate risk. 

1) Prioritise director training

Just because D&Os are generally at the top of the food chain, doesn’t mean they don’t need training. Be sure that all risks are properly considered, that training takes place as to how a risk will be managed, and that a plan is in place for any eventuality. 

2) Keep a record

Minutes from meetings (even online) and record-keeping must be prioritised too. These steps will have a direct impact on protecting your reputation, and are a useful reminder that bad behaviour can go on record too!

3) Get expert insight

Seeking the advice of your financial adviser, as well as health and safety compliance professionals can make all the difference in a pandemic world. You might not be able to truly consider the risks you are facing without some third-party insight. 

4) Be strict

Strict governance and communication needs to be in place. A good example would be a robust cyber policy with rules that everyone has to follow. Cyber related claims due to a lack of security in remote working environments, or when some employees are at home and some at the office, are becoming more common in the new working world we find ourselves in.

5) Get covered

There is incredible responsibility resting on the shoulders of a D&O, which is why short-term insurance cover can really assist to ease some of the burden. D&O liability insurance is one aspect that can become critical to have in place, and should be addressed with your adviser. Like an invisible safety net, it can make all the difference in a time when no one is really sure what could happen next.

 For any assistance or advice regarding Directors and Officers Liability please contact us on
031-5021922 or visit our website www.esbrokers.co.za




 We would like to thank PSG for writing the article on behalf of  Digital Cover magazine.

Risks you’d rather direct elsewhere, but can’t

Directors and Officers (D&Os) of companies face a lot of responsibility. The game has changed in light of Covid-19, with many new risks arising.


Landscape for loss

Many jobs have been lost due to the economic fall-out we’re facing. Even though a lot of this has been unavoidable, a disgruntled former employee could decide their process of termination wasn’t fair. They could allege that your planning in the crisis was unsatisfactory, and that this negligence was actually the root cause of the company having to downsize the workforce.

As you may have to retrench or reduce salaries, litigation can come your way. In terms of the companies act, stakeholders may try to recover any losses and could even seek remuneration from a D&O. 

D&Os must also have awareness about cyber risk as we continue to balance the working-from-home revolution. It is their responsibility to consider this when making the call to work remotely or not. 

Any new risks on the horizon that could affect the business should also be communicated to shareholders. It’s essential to articulate how a cyber-related mistake can impact your business, as a key example.



Here are FIVE more ways to mitigate risk. 

1) Prioritise director training

Just because D&Os are generally at the top of the food chain, doesn’t mean they don’t need training. Be sure that all risks are properly considered, that training takes place as to how a risk will be managed, and that a plan is in place for any eventuality. 

2) Keep a record

Minutes from meetings (even online) and record-keeping must be prioritised too. These steps will have a direct impact on protecting your reputation, and are a useful reminder that bad behaviour can go on record too!

3) Get expert insight

Seeking the advice of your financial adviser, as well as health and safety compliance professionals can make all the difference in a pandemic world. You might not be able to truly consider the risks you are facing without some third-party insight. 

4) Be strict

Strict governance and communication needs to be in place. A good example would be a robust cyber policy with rules that everyone has to follow. Cyber related claims due to a lack of security in remote working environments, or when some employees are at home and some at the office, are becoming more common in the new working world we find ourselves in.

5) Get covered

There is incredible responsibility resting on the shoulders of a D&O, which is why short-term insurance cover can really assist to ease some of the burden. D&O liability insurance is one aspect that can become critical to have in place, and should be addressed with your adviser. Like an invisible safety net, it can make all the difference in a time when no one is really sure what could happen next.

 For any assistance or advice regarding Directors and Officers Liability please contact us on
031-5021922 or visit our website www.esbrokers.co.za




 We would like to thank PSG for writing the article on behalf of  Digital Cover magazine.

Risks you’d rather direct elsewhere, but can’t

Directors and Officers (D&Os) of companies face a lot of responsibility. The game has changed in light of Covid-19, with many new risks arising.


Landscape for loss

Many jobs have been lost due to the economic fall-out we’re facing. Even though a lot of this has been unavoidable, a disgruntled former employee could decide their process of termination wasn’t fair. They could allege that your planning in the crisis was unsatisfactory, and that this negligence was actually the root cause of the company having to downsize the workforce.

As you may have to retrench or reduce salaries, litigation can come your way. In terms of the companies act, stakeholders may try to recover any losses and could even seek remuneration from a D&O. 

D&Os must also have awareness about cyber risk as we continue to balance the working-from-home revolution. It is their responsibility to consider this when making the call to work remotely or not. 

Any new risks on the horizon that could affect the business should also be communicated to shareholders. It’s essential to articulate how a cyber-related mistake can impact your business, as a key example.



Here are FIVE more ways to mitigate risk. 

1) Prioritise director training

Just because D&Os are generally at the top of the food chain, doesn’t mean they don’t need training. Be sure that all risks are properly considered, that training takes place as to how a risk will be managed, and that a plan is in place for any eventuality. 

2) Keep a record

Minutes from meetings (even online) and record-keeping must be prioritised too. These steps will have a direct impact on protecting your reputation, and are a useful reminder that bad behaviour can go on record too!

3) Get expert insight

Seeking the advice of your financial adviser, as well as health and safety compliance professionals can make all the difference in a pandemic world. You might not be able to truly consider the risks you are facing without some third-party insight. 

4) Be strict

Strict governance and communication needs to be in place. A good example would be a robust cyber policy with rules that everyone has to follow. Cyber related claims due to a lack of security in remote working environments, or when some employees are at home and some at the office, are becoming more common in the new working world we find ourselves in.

5) Get covered

There is incredible responsibility resting on the shoulders of a D&O, which is why short-term insurance cover can really assist to ease some of the burden. D&O liability insurance is one aspect that can become critical to have in place, and should be addressed with your adviser. Like an invisible safety net, it can make all the difference in a time when no one is really sure what could happen next.

 For any assistance or advice regarding Directors and Officers Liability please contact us on
031-5021922 or visit our website www.esbrokers.co.za




 We would like to thank PSG for writing the article on behalf of  Digital Cover magazine.