How much does it cost to insure a spaza shop?
Short answer: expect R150 to R400 a month for basic stock cover. Here's what actually drives the price.
Insurance quotes for a spaza shop can look confusing because every broker asks different questions. In practice, the cost comes down to four things.
What drives the price
- How much stock you want covered. R20 000 costs less than R100 000. Be honest about your average stock level, not the day after you restocked.
- Where the shop is. Some areas have higher claim rates. Prices go up with local crime and fire risk.
- What you're covered for. Basic covers theft and fire. Better policies add riots (SASRIA), flooding, and accidental damage.
- Excess. The amount you pay in on any claim. A lower excess means a higher monthly premium.
Typical monthly prices
- Basic stock cover up to R25 000: from about R150 a month.
- Stock and fridges up to R50 000, including riot cover: around R199 a month.
- Full shop cover including building and equipment: R400 a month and up.
What to check before you sign
- Is riot cover (SASRIA) included, or do you have to add it?
- What's the waiting period? 30 days is standard.
- How are claims paid: cash, EFT, replacement stock?
- Do they need an assessor to visit before every claim?
- Who underwrites the policy? Look for a name you know, like Santam.
What Vuleka Insure costs
R199 a month. Cover up to R50 000 of stock, including riot damage. Claims are handled on WhatsApp. Underwritten by Santam. Cancel anytime.