Insuring a small business has become increasingly easy as insurance companies in South Africa have realised the incredible income potential from this sector. Since 1994 with the implementation of Broad-Based Black Economic Empowerment, many white South Africans have been retrenched to facilitate transformation in the workplace in accordance to new employment policies. This has seen many former paid employees establishing their own small businesses all over the country, dealing in everything from chicken farming and transportation to construction and technology services. In addition, newly empowered black people have gained access to financial resources that have enabled them to start small and medium sized businesses. This has sparked a boom in SME businesses. Short-term insurance companies have realised that even though these enterprises are only small businesses, they require tailor made insurance products to suit their budgets and insurance needs. The result is that most short-term insurers in South Africa now offer small business solutions in addition to their individual short-term insurance products. Liability insurance is of particular importance for small businesses that have employees, particularly in the "higher risk" industries such as construction.