What is business insurance?
A business takes years to build – but an accident or disaster could destroy it all in minutes. That’s why businesses should help protect themselves with a quality business insurance product.
With the right cover in place, owners can run their business with confidence, knowing that their premises, stock, and equipment are protected by insurance.
Who should consider it?
Business owners can benefit from taking out an affordable and comprehensive business insurance product to help protect them against the main risks involved in running a business. At Sit & Blake, we offer a full range of Business Insurance to cover all your needs.
SMEs are trying to save money, as they should because it goes to their bottom line. They think if I can save money on insurance online that’s a good thing. But it’s not always a smart move because the lower the premium, the narrower the cover.
Paul Benjamin, 'Solving the SME under-insurance problem', 2017
Recommended for all business owners operating from a fixed location. This policy provides cover that will replace or repair your commercial property if it gets stolen or an accident causes physical damage.
Comprehensive, flexible cover. This insurance can be tailored to your specific needs, covering loss of revenue, profit or rents affected by damage to insured property. It’s designed to keep your business operational and in the same financial trading position as before a loss.
Businesses today operate in an ever-evolving legal and regulatory environment. Consequently, different stakeholders in a business, such as customers, shareholders and industry regulators, can cause disruption as they exercise their perceived right to recover or make an example of an individual or entity.
Whether any legal action or investigation into the affairs of an individual or entity has merit or not, it has the potential to cause financial hardship for an individual or a business. Therefore, it is good risk management practice to have comprehensive liability insurance in place to lower or transfer this risk. Our liability insurance solutions are backed by a proactive claims team, enabling our customers to trade with confidence.
Broadform Liability – Broadform public and products liability insurance, insures your business for its legal liability for accidental injury to a third party or damage to their property. This policy covers the costs of meeting court judgments or out of court settlements, and any legal defense and investigation.
Statutory Liability – This insurance policy protects your business from fines, penalties and reparation imposed by the courts for unintentional breaches of most laws in new Zealand. It also covers the legal costs of investigating and defending claims.
Employers Liability – Recommended protection for business owners with employees. To protect employers against claims by their employees for damages as a result of personal injury arising out of or suffered during the course of their employment that is not covered by ACC.
Professional Indemnity – Recommended for consultancies and service-based businesses. This policy provides cover for the risks associated with offering advice, services or design based on expert knowledge for which you receive a fee or have a professional duty. It protects you from allegations of breaching your professional duty and covers your legal defence fees, including any awards made against you. Some policies also extend to cover investigations and compensation orders by regulatory authorities. Tailored products are available for lawyers, accountants, engineers, architects, real estate agents, management consultants, medical & health professionals, and much more.
More than $2.3 billion worth of business related claims were paid out in 2019.
(Insurance Council of NZ, Annual Review, 2019)
97% of of businesses in New Zealand are small businesses.
(Ministry of Business, Innovation and Employment, ‘New Zealand’s Support for Small Business’, 2018)
60,090 enterprises ceased operation in NZ between February 2018 and February 2019.
(Stats NZ, ‘New Zealand business demography statistics’, February 2019)
What can it cover?
Business insurance packs can offer general protection for a business, which may include cover against:
|Type of cover||Potential benefits|
|Property damage||Repair or replacement of property damaged.|
|Business interruption||Loss of trading profit following insured damage to property and additional costs and expenses incurred during a claim.|
|Theft||Repair or replacement of property stolen.|
|Money||Loss of money.|
|Glass||For replacing glass inside or outside your premises, including your shopfront
windows, mirrors or display cases.
|Transit||For stock that is in transit on the road, in the air or by sea.||Machinery breakdown||Cover for costs associated with machinery breakdown.|
What usually isn't covered?
Exclusions, and the excess you need to pay and limits of liability can vary greatly depending on your insurer and the requirements of your business.
Rohan owns a shop in the city. One night a water pipe bursts, flooding the building and damaging his stock. Even worse, the building must be evacuated and renovated to repair all the water damage. This means that Rohan is unable to trade for six weeks.
Rohan’s business insurance covers the cost of the renovations. And, because he has business interruption insurance, he receives a payout to cover the income lost while he’s unable to trade.