Mid-year risk review: the cover gaps your business may be missing

The 2026 risk landscape for South African small and medium enterprises (SMEs) is hard to summarise. Between relentless cost pressure and input volatility, escalating cyber threats and multiple extreme weather-related events across the country, many businesses have been in constant response mode.

This is according to Rishai Neerachand, Executive Head of Business Insurance at Miway, who says SMEs have been so focused on staying afloat, they may not even realise they’ve already hit the halfway mark and need to reassess their cover.

“Too often, businesses set up their insurance at the start of the year and assume it will carry them through unchanged. But a lot can shift in six months, and if your cover hasn’t kept pace, you could be left exposed,” Neerachand states.

A mid-year review offers a practical opportunity to reassess whether cover still matches current realities, says Neerachand, who recommends that local businesses look at the following five areas:

1. Outdated asset values

There is a common misconception that all assets depreciate over time, but with South Africa’s persistent inflation and rising cost environment, some equipment, vehicles and specialised machinery may now cost more to replace than when they were originally insured. If sums insured haven’t been adjusted, claims payouts may fall short of what is required for a business to fully recover.

“Even moderate inflation can create meaningful gaps over time,” says Neerachand. “Reviewing asset valuations regularly helps avoid unexpected shortfalls after a loss.”

2. Uninsured or newly acquired equipment

As businesses grow or adapt, Neerachand notes it is not uncommon to add tools, machinery or technology, but not all of it makes it onto the insurance schedule. “Businesses often focus on big-ticket items, but smaller or newly acquired assets can be just as critical to operations,” he says. “No matter how big or small, if it’s not declared, it’s not covered.”

3. Stock levels and seasonal fluctuations

Mid-year is also a time when stock levels may have shifted, whether due to seasonal demand, supply chain adjustments or expansion into new products. “If your stock holding has increased, your cover needs to reflect that,” says Neerachand. “Otherwise, a loss event could leave you carrying part of the cost yourself. “Some insurance products also require updated turnover values for the insured business. The mid-year risk review is also an opportunity for the client to update the turnover estimate if the business forecast has materially changed,” Neerachand added.

4. Liability blind spots

Many businesses have had to pivot in 2026, introducing various potential operational changes, such as entering new markets, taking on different clients, or outsourcing services. While these could all be very positive developments, Neerachand warns that they can introduce liability risks that weren’t previously considered.

“Liability exposure evolves alongside your business. What was sufficient six months ago may no longer be adequate today. It’s therefore important to take a moment to reassess whether your cover still reflects your current operations and exposures.”

5. Backup systems and business continuity assumptions

With the country’s long history of loadshedding and an increasingly complex cyber security landscape, many local businesses now rely on backup power, sophisticated IT systems or contingency plans. While often necessary, Neerachand acknowledges that these backup systems are not always as robust as business assumed.

“We’ve seen cases where businesses believed they had sufficient backup measures in place, only to find gaps when disruptions occurred, so it’s important to stress-test these assumptions from time to time.”

In a year where business risks have not followed a predictable path, Neerachand concludes that reviewing cover is less about caution and more about staying aligned with reality. “Small adjustments made mid-year can have a significant ripple effect when something goes wrong, particularly when pressures on cost, operations and resilience are already high. Taking stock now allows businesses to move into the second half of the year with greater clarity on where they stand, and where they may still be exposed.”