Despite a push from some large companies for employees to return to the office full-time, many South Africans are sticking to hybrid work models, splitting their time between home and the workplace.
The latest BrandMapp survey reveals that as of 2023, 54% of mid-market and higher-income South Africans are either working from home permanently or following a hybrid work trend.
But, Thabo Twalo, Chief Underwriting Officer at Santam Broker Solutions, highlights that offices still aren’t operating at full capacity, and this, he says, brings new risks for business owners. “Every business owner needs to be a risk manager – prevention is always better than cure,” Twalo asserts.
Risks more pronounced
With fewer employees present, the risks associated with partially occupied office spaces are more pronounced. One significant risk is fire. “Fires pose a severe threat to businesses, especially when maintenance is neglected. For instance, a malfunctioning fire sprinkler system, due to poor upkeep, can lead to disastrous outcomes. The lack of constant human presence in the office means fires may not be detected or addressed in time, potentially resulting in extensive damage,” he said.
Maintenance
Another concern is maintenance. “Businesses must continue to invest in the upkeep of their facilities and security systems. Failure to adhere to maintenance requirements, as stipulated by insurance policies, could impact a business’s ability to claim in the event of an incident,” he added.
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He also explained that the evolving risk environment also necessitates frequent reviews of business risk profiles. New risks, such as cyber threats and severe weather events, must be evaluated, especially as business operations change with more employees working from home. Ensuring that insurance policies align with these new conditions is crucial.
Additionally, businesses should consider their dependence on partners and supply chains. Changes in these areas can introduce new risks that need to be managed with contingency plans and appropriate insurance.
To mitigate these risks, business owners are advised to maintain and regularly service equipment, keep all compliance certificates updated, and ensure that fire safety measures are in place. Regular reviews of insurance policies, in consultation with intermediaries, are also recommended to address any changes in risk circumstances.
Twalo emphasizes the importance of keeping insurance policies up-to-date and working closely with intermediaries to avoid coverage gaps. “The pace of change in the last few years highlights the need for more frequent policy reviews,” Twalo notes.
