What a business insurance policy covers: the sections, one by one

A business insurance policy is a bundle of separate sections, each covering one kind of loss: your property, your income, claims by other people, your vehicles and more. Each section has its own wording, limit and exclusions, so the schedule tells you what is covered. The licensed provider who calls you explains which sections apply.

What is a business insurance policy made of?

Think of it as a folder of covers rather than a single product. The folder has a cover page (the schedule) and a set of sections, and you may hold some sections and not others.

The business hub on this site lists the usual building blocks: assets (buildings, contents, stock and equipment), public liability, professional indemnity, business interruption, vehicles and fleet, employer's liability, cyber, and goods in transit. A small shop might have only the first few. A transport business would add vehicles and goods in transit. A one-person consultancy might hold little more than professional indemnity.

Olvian does not choose the sections for you. It passes your request to licensed providers who are paid a fee for that referral, and they ask about your business before they quote.

What does the "assets" section cover?

The assets section deals with the physical things your business owns or is responsible for. Typical items are the building (if you own it), contents, stock, machinery and office equipment. Each item usually has its own sum insured, and the policy lists the events it responds to, such as fire. Events and items that are not listed are not covered.

Two practical points follow from that.

• The sum insured is a limit. The policy will not pay more than the limit for that item, however large the loss.
• An exclusion is a specific event, item or circumstance the section does not respond to. Exclusions sit in the wording, and the schedule may add more.

What does business interruption cover?

Business interruption is the section that deals with lost income. It is meant for the time after an insured event, for example a fire, when you cannot trade. It is usually tied to the assets section: the event that damages the property is the event that triggers the income cover. The section is written for a fixed period, so the schedule shows how many months it runs.

Because the trigger is an insured event, a loss of income that has another cause is not covered by this section. Read the wording that describes the triggering events before you assume anything.

What does the liability section cover?

Liability sections respond when someone else claims against your business. There are two broad kinds, and they are separate sections:

• Public liability is for injury to a member of the public or damage to their property because of your premises or work. See what public liability cover pays for.
• Professional liability (professional indemnity) is for a client's financial loss that they say your advice or work caused. See what professional liability cover pays for.

Injuries to your own employees are handled differently. Section 35(1) of the Compensation for Occupational Injuries and Diseases Act 130 of 1993 says that no action lies by an employee, or a dependant, against the employer for damages for an occupational injury or disease that causes disablement or death, and no liability arises for the employer except under that Act. So a public liability section is not the place where an employee's workplace injury is dealt with.

What about vehicles, goods in transit and cyber?

These are added when your business needs them.

• Vehicles and fleet apply when the business owns or runs vehicles for work.
• Goods in transit applies when you move stock or client goods.
• Cyber applies to digital loss, such as a data incident, as the section's wording defines it.

Each of these has its own definitions. "Fleet" and "goods in transit" in particular mean what the wording says they mean, so ask the provider to point you to the definition.

What must an insurer tell me about limits and exclusions?

Rule 11 of the Policyholder Protection Rules (Short-term Insurance), 2017 sets out what an insurer must disclose. Three points matter when you read a business policy.

1. Rule 11.3.1 says any communication to a policyholder about a policy must be in plain language and must not be misleading.
2. Rule 11.1 defines a "significant exclusion or limitation" as one that may affect the decision of the average targeted policyholder to enter into the policy. The list includes any limit on the amount of cover and any limit on the period for which benefits will be paid.
3. Rule 11.3.4 says the information given must help the policyholder understand the features of the policy and whether it meets their requirements, taking into account the policy's terms and conditions, including main benefits, exclusions, limitations and duration.

Rule 1.2 applies the Rules to all new and existing policies unless a rule says otherwise. Read the rule you rely on, because some rules apply only in particular situations.

Why do two businesses with the same policy name get different cover?

Because the policy name is only a label. What decides the cover is the list of sections, the sums insured, the limits, the excess and the exclusions on the schedule and in the wording. Two shops can both hold "a business policy" and yet one has business interruption and the other does not, or one insures stock for a different sum or on different terms.

That is why a business request asks about your trade, your premises and your staff before anyone can quote. The answers decide which sections are offered and what the wording says. It is also why the person who explains the policy to you must be the licensed provider, not a website.

How do I read my own schedule?

1. Find the list of sections. Note which ones you hold.
2. For each section, write down the limit and the excess (the part of a loss you carry).
3. Look for the period of cover for business interruption.
4. Read the exclusions for each section, not just the general ones.
5. Check the details the insurer relied on: your trading address, what you do, your turnover and your staff. If they are wrong, tell the provider. What insurers ask a small business explains why that matters.
6. If anything is unclear, ask the provider to confirm the answer in writing.

Can I change my mind after buying?

For a new policy there is a cooling-off right. Rule 4.2 allows a policyholder to cancel within 14 days of receiving the policy contract where the policy term is longer than 31 days and no benefit has been paid or claimed and the insured event has not occurred. Rule 4.3 says the premiums paid must be refunded, less the cost of any risk cover actually enjoyed, and Rule 4.4 says the insurer must act on the request within 31 days of receiving the cancellation notice. Rule 4.6 limits the right to new policies and variations of existing ones.

How does Olvian fit in?

Olvian is a lead-referral service. You ask once, and the request goes to licensed providers who pay Olvian a fee and call you back. Olvian is not an insurer, broker, financial services provider or adviser, and it does not recommend what or how much to buy. The provider who calls is the one who explains the sections, limits and exclusions that apply to your business.

Sources

Checked on 31 October 2026. This guide is information, not advice.

• Policyholder Protection Rules (Short-term Insurance), 2017, Rule 1: Application
• Rule 4: Cooling-off rights
• Rule 11: Disclosure
• Compensation for Occupational Injuries and Diseases Act 130 of 1993, section 35