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Subscribe to our
bi-monthly
HPASA newsletter. |
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Hospitality
Insurance from SATIB Insurance Brokers |
SATIB Insurance Brokers
are leaders in tourism insurance, hospitality
insurance and risk management services. We
are proud to be affiliated with the Hospitality Partners
Association of South Africa and can attribute this standing
to over 20 years of dedicated service to the tourism,
hospitality and wildlife industries in Africa.
At SATIB Insurance Brokers, we are proud to offer a
wide range of insurance solutions to
meet the intrinsic requirements of all the industries
we represent: the tourism, hospitality as well as the
leisure and wildlife industries.
Make sure you subscribe
to the HPASA Hospitality Business Hub newsletter to
keep up to date with all the latest industry
occurrences. We’ll also be posting many
informative articles about tourism insurance and hospitality
insurance, as well as all the insurance solutions that
are available within the relevant industries.
Feel free to get
in touch with us should you have any queries relating
to hospitality insurance or SATIB itself.
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June 2013
You get what you pay for...especially in Insurance
By Gavin Courtenay,
Managing Director, SATIB Insurance Brokers
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‘’Due
to the harsh economic situation
the world currently faces, we
are all struggling to make ends
meet. In order to do make ends
meet we shop around for ‘cheaper
products’. Cheaper
can, however, also be more expensive
in the long run.
Research
is key
Insurance, being the grudge
purchase it is, is often not
researched properly when a purchase
is made. There are a vast number
of insurance products available
and the majority of those are
tailored to suite various requirements
and protect differing assets
to differing degrees.
Price is right; product
may not be
Many of us check ingredients
as well as price when shopping
at the supermarket but don’t
seem to show the same concern
when buying insurance, and therefore
price is often the only criteria
considered when making the purchase.
Just because the cheapest quote
suits your pocket it doesn’t
necessarily suit your requirements.
Premium differences
Insurance policies
often differ drastically in
premiums but there are reasons
for this. |
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April 2013
LIABILITY
CLAIMS LIKELY TO ESCALATE
By Gavin Courtenay,
Managing Director, SATIB Insurance Brokers
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Gavin
Courtenay
Managing Director |
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With
the introduction of the Consumer
Protection Act, experts are
expecting the number of liability
claims, especially against small
businesses, to increase. The
requirements of the Act need
to be carefully considered and
business owners should ensure
that their processes are aligned
with it to avoid costly liability.
It is expected that consumers
will begin to exercise their
rights under the Act as understanding
of its terms and access to the
various consumer commissions
improves.
Protect
your business
Business owners can
protect themselves against a
costly liability suit by taking
out the correct insurance. Suppliers
anywhere in the chain, including
the retailer, are now responsible
for defective goods rather than
just the manufacturer, as in
the past, and retailers should
have comprehensive products
liability cover and be insured
for the possibility of recalling
goods, which are potentially
unsafe. |
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February 2013
IGNORE
SHORT-TERM INSURANCE AT YOUR PERIL
By Gavin Courtenay,
Managing Director, SATIB Insurance Brokers
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Protecting
your assets is exceptionally
important but many South Africans
are living without short-term
insurance - without a safety
net to protect them from life’s
knocks.
South Africa's short-term insurance
penetration rate is estimated
to have slipped from 3% in 2005
to 2.5% this year, with most
market growth being driven by
increasing premiums rather than
by a rising number of policyholders.
There is no way to tell when
disaster will strike and it
is worth noting that the damage
done in the Gauteng hailstorm
and the flooding in the Eastern
Cape, both unpredictable disasters,
cost the South African insurance
industry over R1 billion. |
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December /January 2013
COVER
FOR BUSINESS INTERRUPTION -WHAT IT IS AND
WHY YOU NEED IT.
By Gavin Courtenay,
Managing Director, SATIB Insurance Brokers
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Business
Interruption will cover you
for income lost should there
be any physical damage (like
a fire or flood) to your property,
which results in business/revenue/profit
not being earned that would
have been, should the business
have been operational.
Depending on the details
of the cover, business interruption
insurance could pay out:
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profits,
according to the financial
statements, lost during
the period of closure;
all operating expenses,
which are still being
incurred, such as rates,
water and electricity
costs; and |
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the costs
of operating out of a
temporary location if
necessary and repair costs
depending on the situation.
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The terms
There are important
terms that need to be understood
when arranging business interruption
insurance and these may need
to be discussed in greater detail
between brokers and their clients.
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October 2012
DIRECTORS
AND OFFICERS INSURANCE MORE ESSENTIAL THAN
EVER
By William Croxton,
SATIB Insurance Brokers, Commercial &
Industrial division
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The
recent revisions to the Companies
Act and growing awareness of
individual rights amongst the
general public are likely to
result in an increasing amount
of personal responsibility and
blame being laid at the feet
of company Directors and Officers,
creating an imperative that
all businesses consider Directors
and Officers (D&O) insurance.
Cover
D&O Insurance essentially
covers the directors and officers
of a company against wrongful
act, breach of duty, breach
of trust, negligent error or
omission.
Claims
Claims will usually come from
third parties who have an interest
in the organisation such as
holders of shares, other securities
or bonds, creditors, the Receiver
of Revenue, liquidators, administrators,
government departments, police
and public prosecutors, contractually
related third parties, customers,
suppliers, employees and competitors.
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August 2012
WHAT
IS PUBLIC LIABILITY INSURANCE?
By Gavin Courtenay,
Managing Director, SATIB Insurance Brokers
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| Gavin
Courtenay, Managing Director
at SATIB Insurance Brokers |
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Liability
insurance provides cover for
your business against the financial
risk of being sued by a member
of the public, says Gavin Courtenay,
Managing Director of SATIB Insurance
Brokers.
When guests or visitors are
on your premises and they are
injured or become ill as a result
of you or your staff’s
negligence, which results in
them suffering financial loss,
and subsequently lodging a claim
for compensation from you, then
public liability insurance will
pay for your legal defence costs,
and if the court finds in the
complainant’s favour,
the costs of the claim up to
the indemnity limit.
Certain funding bodies, tourism
trade associations such as the
Southern African Tourism Services
Association (SATSA) and certain
government regulations require
tourism businesses to have public
liability insurance in place.
If a tourist were to institute
a claim against a tourism service
provider that does not have
liability insurance, then both
the owners of the business and
their employees’ financial
future may be in trouble. Added
to this is the fact that a claim
that is not honoured may have
a negative effect on both the
tourism industry and the country
as a whole. |
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June 2012
THE
EFFECT THE CURRENT ECONOMIC EFFECT IS HAVING
ON THE WAY YOU INSURE YOUR BUSINESS.
By Gavin Courtenay,
Managing Director of SATIB Insurance Brokers
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"Risk
product fees have remained constant
in the current economic recession
but owners and operators of
hospitality establishments have
been forced to cut operating
expenses. Insurance premiums
are certainly an expense that
have come under close scrutiny,
says Gavin Courtenay,
Managing Director of SATIB Insurance
Brokers.
However, insurance premiums
are primarily based on two crucial
aspects; risk exposure and self-insurance.
In order to reduce premium we
advise our clients to either
increase their excess margin
(the portion of a claim that
would be self-funded in the
event of loss) or mitigate their
exposure to risk - usually it
requires a combination of both." |
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April 2012
THE
CURRENT ECONOMIC CLIMATE IS AFFECTING THE
WAY YOU INSURE A TOURISM BUSINESS
By Gavin Courtenay,
Managing Director, SATIB Insurance Brokers
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According to the latest results
of the TBCSA FNB Tourism Business
Index (TBI), the tourism trade has
shown a marked improvement in business
performance for the last quarter of
2011.
In fact, the data from ACSA,
comparing arrival stats for the period
January to October 2011 against the
same period for 2010 indicates an
increase in passengers arriving on
international, regional and domestic
flights.
So, if tourist arrivals
are on the increase, what’s
the problem? |
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October 2011
INSURANCE
AND THE COMPANIES ACT |
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The
introduction of the revised Companies
Act and the advent of the King III
Code on Corporate Governance has necessitated
that companies review their insurance
cover, specifically with regard to
Directors and Officers liability.
Accountability
Greater accountability for companies
and their stewards in general has
created a heightened awareness among
the general public of their rights
of recourse against businesses when
they are perceived to not have conducted
or managed their affairs in a responsible
manner.
Directors
and Officers (D&O) insurance
The personal risks for corporate office
bearers and the reputational risks
for corporates themselves are therefore
significant. The good news is that
these risks can be mitigated through
comprehensively structured Directors
and Officers (D&O) insurance. |
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August 2011
LEISURE TOURISM
STAKEHOLDERS MEET TO SOLVE CRISIS |
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A Leisure Tourism
Stakeholder Meeting was held on 28
June 2011, when around 70 senior tourism
stakeholders met informally to discuss
the current crisis in the leisure
tourism industry and to come up with
solutions.
Chaired by Malcolm McCulloch
of SATIB Insurance Broker’s
client Wilderness Safaris and presented
by Colin Bell (Wilderness Safaris
founder) and Peter Anderson (SATIB
client & strategic partner, Livingstones
Group), the meeting confirmed that
there is a crisis in the tourism industry
and that many establishments have
closed down resulting in job losses. |
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June 2011
CRITICAL PROCEDURES
IN GUEST MEDICAL EVACUATION |
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Most
hospitality establishments have medical
emergency contact details available
to guests in their rooms but without
appropriate procedures and policies
in place, this information can have
adverse consequences.
Picture this scene
The parents of a two-year old child
are busy unpacking suitcases in the
second floor master bedroom of their
plush game reserve suite, unaware
that their active child is happily
climbing the balcony balustrade. At
the sound of their child’s piercing
scream, the mother rushes onto the
balcony and sees her child lying motionless
on the sloping ground eight meters
below.
Shouting for her husband to phone
a doctor as she rushes out the door
to her child; her husband dials the
medical emergency number provided
in the room information directory.
Cradling his cell phone to his ear
as he hurtles to his family’s
aid, the call is picked up by a highly
trained incident manager at the call
centre. On accessing the guests’
location and situation, the call is
immediately patched through to a doctor
trained in remote medical prognosis. |
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December 2010
LIGHTNING CONDUCTION
– A RISK SOLUTION?
By Joe Van Rensburg,
SATIB Risk Solutions |
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An approaching thunderstorm
can raise a lodge owner’s anxiety
levels, sometimes to fever pitch. The position
of the lodge – on a hillside or mountain
- and the region in which the lodge or hotel
is located are factors that will determine
the seriousness with which owners and managers
will regard the threat of a thunderstorm
to the property.
Direct Lightning Strike
A lodge manager recently described in quite
chilling detail what the experience of a
direct lightning strike on the elevated
timber and thatch structure had meant to
him.
Very Lucky?
The appearance of an electric blue shimmering
light on all the surfaces of the lodge’s
main building, gave him the eerie sensation
of a powerful visiting force. Fortunately,
this experience did not result in a fire,
personal injury or material loss, but it
could very well have, with devastating effect.
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October
2010
UTHE UGLY TRUTH BEHIND GUEST ROOM THEFT
By Andre du Toit,
SATIB Risk Solutions |
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To any general
manager or owner of a property in the hospitality
industry, theft from guest rooms has to
be a scourge.
Easy Money
Clothing, laptops, cell phones and jewellery,
do not have the returns of foreign currency
or the speed with which currency can be
exchanged, but the fact remains that guest
room theft is easy money for the perpetrator
and detection is often difficult. |
Guest Room Theft:
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Is often detected too late
to determine the culprit |
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There is often no record of the perpetrator
having entered the room |
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Is a direct invasion of the guest’s
privacy and downright embarrassing for the
owner or manager when dealing with a guest
who has reported a theft. |
Most Stolen
Items that are most often stolen from guest’s
rooms include clothing, cameras, jewellery, cellular
phones and laptops, with foreign currency being
the most sought after. |
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October
2010
UNDER-INSURED?
By Gavin Courtenay,
SATIB Risk Solutions |
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There is a trend within
the insurance industry of increased exposure
to high levels of risk due to possible underinsurance
and the application of the condition of
average by Insurers.
Under-Insurance
Under insurance is where your sum insured
(maximum amount that can be claimed in the
event of a loss) is less than the replacement
/ reinstatement cost of the property or
of specified items. |
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August
2010
UNDERSTANDING RISK IN HOSPITALITY
By Gavin George
at SATIB Risk Solutions |
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Understanding risk in the hospitality
industry can be a tricky business, writes
Gavin George, a Director of SATIB Risk Solutions.
Impact Factors
A weak Rand and rising inflation directly
impact on insurance indemnity limits, resulting
in under-insurance and consequent unhappiness
with claims settlements. Spiralling building
costs and recent developments in liability
claims give food for thought - and action!
Building Costs
Industry Insight is a construction industry
market intelligence firm and they released
a report, which stated that average building
costs have increased by 19,1% year-on-year
and that the composite building cost index
for building materials rose year on year
to 11,8%. According to the report, the
average building rate per m2 had increased
to over R 4,000. However it said more
than 80% of the projects surveyed had
an average building rate of R 5,000 or
more per m2. |
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August
2010
FIRE!
By Gavin George at
SATIB Risk Solutions |
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Combustion is a rapid
chemical reaction in which heat and light
are emitted. A recent article in the Fire
Protection Magazine entitled “How
Fires Start and Why They Spread” provides
us with information on a topic that we are
certainly familiar with.
Fuel Removal
In our business of risk management in the
hospitality industry, our focus is consistently
turned to how to prevent fires by removing
the one of the essential elements in the
triangle of combustion, fuel. |
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June
2010
ROAD ACCIDENT FUND AMENDMENTS |
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Twenty one months after
the Road Accident Fund Amendment Bill was
passed into legislation, it appears as though
little has changed and travellers on South
Africa's roads, specifically in the tourism
industry, still have reason for concern.
Unconstitutional
On 31 March 2010, the North Gauteng High
Court dismissed an application by various
industry stakeholders to have the RAF Amendments
declared unconstitutional. The specific
section, which is causing the controversy
is Section 21, which abolishes the accident
victim's common law right to claim damages
for his or her personal injuries from the
wrongdoer. |
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June
2010
MITIGATE YOUR RISKS DURING THE 2010 WORLD
CUP |
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With hundreds of
thousands of foreign visitors pouring
into the country from the end of this
month, it is well worth examining
your risks and attempting to limit
them.
Threat to Liability
Many tourism and hospitality operators
would like to believe that incidents
are few and far between but SATIB's
24 hour Crisis Call facility itself
manages at least thirty incidents
a day. The threat of liability exposure
is constant and with the influx of
tourists, this threat will be even
bigger.
Basic Steps
to Keeping Guest Safe
Guests believe that they are paying
for the privilege of being safe. |
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GETTING
YOUR LIFE IN ORDER
By Brett Lazarus at
SATIB |
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Taking care of business
and family is important, no more so than
when planning your estate or succession
plan. Death or disability can be disastrous
for the survivors if not properly insured
and managed.
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Advice for Life
SATIB understand this and have formed a
life assurance division. SATIB Life is headed
by Brett Lazarus, a qualified consultant
with extensive experience. SATIB can now
advise you on the best solutions for your
risk needs, all at competitive premiums.
Consider the following:
Buy & Sell
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Should one of the business
owners pass away or become disabled,
do the remaining business owners have
the financial resources to purchase
that person’s interests? |
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Has a Buy & Sell agreement been
put in place and is there funding
sufficient available should the worst
happen? |
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A Buy & Sell Agreement is designed
to protect the shareholding of the
various partners and owners in the
event of death or permanent disability
of one or more of them. |
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It also provides the surviving
owners and partners with the funds
to purchase the shares of the deceased
or disabled person. |
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DO
YOU HAVE AN EMERGENCY PLAN FOR 2010 WORLD
CUP GUESTS?
By Des Langkilde at
SATIB |
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If you will be hosting
guests from overseas for the 2010 World
Cup, consider the SATIB24 Guest Crisis Call
insurance coupon to cover them.
SATIB24 Coupon
Specifically tailored to insure guests’
safety, the SATIB24 coupon is available
to both corporate companies and the local
tourism trade who will be hosting at least
thirty guests from the 1st June to the 31st
July 2010.
This coupon includes:
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insurance cover to pay for incident
management fees, |
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medical evacuation and
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outpatient intervention costs,
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including trauma counselling. |
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Incidents
Dr. Simon King, MD of the Crisis Call
Centre says that they are tripling
their capacity to deal with emergency
incidents over the World Cup period.
"SATIB Risk Solutions launched
the guest coupon in January and based
on the response they have received,
it is clear that hosts are taking
their international guests' safety
very seriously during the event"
says Dr. King. |
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| PROFILE
ON SATIB RISK SOLUTIONS (SATIB) |
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SATIB Risk Solutions offer
a wide range of insurance solutions to meet
the intrinsic requirements of the tourism,
hospitality, leisure and wildlife industry.
Offices
With offices in five Provinces within South
Africa and in Botswana, Namibia, Mozambique,
Zambia and Zimbabwe, and correspondent offices
in thirteen other African countries, SATIB
are ideally located to offer the tourism
trade expert risk management and insurance
advice along with prompt claims settlement
and efficient service. |
Support
Backed by the support of insurers
with high financial security protocol,
including Lloyd’s, coupled to
their extensive knowledge of their
clients businesses, SATIB have a unique
recipe for success. |
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| FIRE
SAFETY - SUMMER FIRE MITIGATION TIPS |
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Hospitality and leisure
establishments are exposed to hazards and
potential risk on a daily basis. Statistics
show that exposure is increased during the
months from December through to May.
Statistics
Countless variables are responsible for
these statistics, however with access to
real claims and case studies, Tourism Risk
Managers (TRM), SATIB's preferred experts,
are able identify crucial areas that CAN
be influenced by proactive risk management.
Education and Training
By educating, training and constantly reminding
both staff and guests, potential hazards
are successfully removed, exposure is lowered
and insurance claims are reduced during
this historically risky period. |
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| AESTHETICS
& LODGE SAFETY |
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Most safari lodges are
constructed using materials that blend into
the natural surroundings and offer an element
of aesthetic appeal that has become synonymous
with Africa.
Construction
of Balustrades
A common feature in the construction of
balustrades is the use of weathered tree
branches, with all their twists, gnarls
and often strangely distorted shapes as
either the handrail or supporting baluster
uprights. |
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