News & Media


2018-10-15
Guesthouse Insurance Cover


Guesthouses in Marloth Park should be correctly insured to cover the financial risk owners have on their property.  Whether the owner has a bond on the property or not, adequate insurance should be in place to cover the owner/financial institution for any losses that may occur.

What does Fire cover?  It coverlosses relating to structural damage and repairs, replacement of assets and equipment and also stock losses resulting from fire incidents.  Should the owner has cover for Business Interruption, compensation will be for the loss of revenue and costs associated with the interruption of business operations (guesthouse close down while damaged) in the weeks immediately following a fire incident.

Flames, smoke and the water used to extinguish the fire can severely damage buildings, machinery, household contents, electronic equipment etc.  Guesthouses may close down for a long period of time and if not adequate insured can lead to financial difficulties .

The Occupational Health and Safety Act (OHSA 1994) is very clear on adequate fire insurance.  In short it says that all Employers have a legal and moral obligation to assure the safety of their employees and those visiting (guests).  Failure to comply can result in penalties and the owner can be held liable for damages, civil litigation or prosecution by the relevant authorities.

Annually fires cost businesses/private individuals millions of rand where there is not adequate Fire insurance in place. Proper prevention, protection and insurance against the risk of fires and spreading of fires should be the main focus for any Guesthouse Owner in Marloth Park.

Dorothy Roux

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