Navigating Today’s Tougher Insurance Landscape: How Brokers Can Help Clients Mitigate Risk
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Is placing commercial risk becoming more difficult in today’s insurance market? Are insurers demanding more rigorous risk assessments than in previous years? In many cases, the answer is yes. Risk mitigation has taken centre stage, and insurers are increasingly expecting clients to comply with key regulations such as SANS and the National Building Regulations and Building Standards Act.
So, what steps should clients take to stay compliant, and how can brokers support them in reducing their exposure? Below are practical risk mitigation strategies you can share with your clients:
Fire Protection
· Ensure that the correct type and number of fire extinguishers are installed in accordance with SANS 10400 guidelines—typically, one extinguisher per 200m², depending on the risk profile.
· Fire extinguishers should be clearly marked, easily accessible, and free from obstruction.
· Verify that extinguishers are serviced annually by a certified fire engineer.
· If the premises have a sprinkler system, confirm it was designed and approved by a qualified fire engineer, with sufficient water supply and proper commissioning.
· Install surge protection on all critical equipment, such computers and plant and machinery.
Housekeeping and Storage
· Maintain clean, clutter-free aisles at all times.
· Adhere to legal stacking height limits and ensure clearance from ceilings and lighting fixtures.
· Store stock on pallets where possible to minimize flood damage.
· Flammable materials must be labelled correctly and stored in certified fireproof cabinets.
· Gas cylinders should be locked in approved cages when not in use.
· Avoid overstocking, as it can exacerbate fire risks.
· Ensure waste is disposed of daily in designated areas, away from the main structure.
Electrical Compliance
· All buildings must have a valid Electrical Certificate of Compliance (CoC), issued by a licensed electrician.
· Faulty electrical installations are a leading cause of fires in South Africa. A valid CoC confirms that the system is safe and compliant.
Theft Prevention
· Encourage the use of a monitored alarm system, active whenever the premises are unoccupied.
· Install burglar bars and gates on all accessible windows and doors.
· Secure all cash in a certified, SABS-approved safe.
Storm and Flood Preparedness
· With severe weather events becoming more frequent, proactive steps are essential:
o Clean gutters, drains, and stormwater systems regularly.
o Assess water runoff and install additional drainage if needed.
o Elevate stock and electrical items to prevent water damage.
o Report any blocked municipal drainage systems promptly.
o Repair roof leaks quickly and reinforce vulnerable areas.
Business Continuity Planning (BCP)
· A BCP is critical for small to medium enterprises. It outlines how a business can continue operations following a crisis such as a fire, flood, or pandemic.
· A robust BCP should include:
o A comprehensive risk assessment
o A recovery and emergency response strategy
o A communication plan
o Clearly defined roles and responsibilities
By actively helping clients understand and implement these risk mitigation measures, brokers can play a vital role in improving insurability and minimizing potential losses.
