Tag: physical damage

An insurance concept that often gets misunderstood, despite underpinning every policy, is insurable interest. While it might sound technical, the principle is quite simple. Simply put, you can only insure something if its loss or damage would cause you a financial setback. If you do not stand to suffer financial loss directly from the loss of or damage to an insured item, insurance will not cover that loss.

Earlier this month, a bus caught fire inside Africa's longest road tunnel, the Huguenot Tunnel. The flames were sorted out “chop chop”. The traffic, not so much. Like a braai without firelighters, everything smoked for about two weeks. For most drivers, it meant longer trips and irritation. Still, we are South Africans. We do not sit still. We find another road, dodge a few potholes and carry on.

There is no longer space to think of the accountant in the traditional sense. The role, responsibility and professional competence of an accountant has grown significantly in the modern era with the profession branching into blockchain, Artificial Intelligence (AI) and the likes, with limitless reach across the globe by means of ever improving technology.

The insurance aspects of film production shouldn’t be left to chance and producers should consider the very diverse risks accompanying the development of movies or series. The role of commercial and film producers’ insurance cover is to protect the financial interests of the production funders against unfortunate events that may cause physical damage or delays resulting in a loss.

The Western Cape High Court decision to compel insurance company Guardrisk to honour the COVID-19 business interruption insurance claims of Cafe Chameleon, a Cape restaurant, is to be applauded.