What business insurance trends reveal about entrepreneurial blind spots

Posted on 17 Jul, 25 by BrightRock

While South African entrepreneurs are growing increasingly sophisticated in planning for long-term growth and succession, a critical and often overlooked insurance gap is leaving a vast number of small and medium-sized businesses dangerously exposed. South African needs-matched life insurer, BrightRock, reveals a snapshot of business insurance trends, highlighting both the cover entrepreneurs prioritise, such as buy-and-sell cover and keyperson insurance, and those they sometimes overlook, including contingent liability and business overheads protection.

These patterns reflect not only what business owners fear and value, but also where they perceive risk, feel exposed, and where deeper understanding and proactive intervention are still critically needed.

1. What buy-and-sell insurance reveals about long-term vision

Buy-and-sell policies, designed to protect partnerships and ensure smooth business succession in the event of a partner’s death or disability, are by far the most frequently sold at BrightRock. This provides an interesting insight into how entrepreneurs view ownership and continuity. They are no longer building businesses merely to survive but are planning for longevity, especially for when they are no longer around. The popularity of this type of cover points to a deepening awareness that the legal and financial structure of a partnership must be safeguarded just as much as its profits. It also signals a growing sophistication in business thinking: that true sustainability requires preparing for the future.

2. The strategic rise of keyperson cover

Closely behind is keyperson insurance, a product that protects businesses from the financial impact of losing a critical employee, founder, or specialist, due to a permanent disability or death. Its popularity reflects a clear realisation that people are the pulse of any business. In an increasingly knowledge-driven and service-based economy, talent is a strategic asset and hard to replace. Entrepreneurs are recognising that key client relationships and leadership cannot simply be replaced overnight. In taking out keyperson cover, business owners protect their intellectual capital and affirm that their people are central to their business model.

3. Contingent liability trends for financial maturity

Just behind these two sits contingent liability insurance, which covers business loans that owners have personally guaranteed. This is a common scenario in an economy where access to unsecured capital is limited, and where entrepreneurs are often forced to blur the line between personal and business finance. The uptake of this cover reveals a shift in financial literacy and maturity. Business owners are waking up to the fact that while risk is necessary for growth, it must be contained. They understand that their appetite for business expansion cannot come at the expense of family security or personal solvency.

4. Business overheads cover still undervalued

Business overheads insurance covers everyday operational costs like salaries, rent, and utilities when the owner is temporarily disabled. temporary incapacity is more likely than permanent disability. Many owners, particularly sole proprietors and microbusinesses, underestimate the operational strain caused by even a brief disruption to their ability to work. This could be due to affordability challenges, a lack of awareness, or simply because the perceived immediacy of everyday survival leaves no time to consider future vulnerability. The issue is not just underinsurance but an underappreciation of the fragility that exists in the day-to-day functioning of small businesses.

Product structures must catch up to consumers’ needs

For insurers, financial advisers, and policymakers, these insights should point to where educational efforts need to be focused and where product innovation is required to support structures for small businesses.

This article is attributed to Izak van der Westhuizen, Chief Financial Officer at BrightRock. It was first published online on Insurance Biz on 16 July 2025. You can read the original article here. https://insurancebiz.co.za/news/life-insurance/izak-van-der-westhuizen-what-business-insurance-trends-reveal-about-entrepreneurial-blind-spots.html