Running any business comes with some level of risk. And while it’s impossible to eliminate risk, it is possible to mitigate it.
Having safeguards in place – like business insurance – can help you manage any fallout when problems arise. It may even help your business stay solvent in a crisis.
In New Zealand, business insurance is not mandatory, leaving many businesses vulnerable to financial loss. An employee injured on duty, an unexpected law suit from a discontented client, accidental or criminal damage to property or interruption to business because of a natural disaster like earthquake, fire or flood all expose a business to risk.
The fact is, even with a substantial emergency fund, most businesses would be levelled by a natural disaster, a fire or a lawsuit attacking your reputation.
Regardless of the type of business you’re in, having business insurance in place protects the value of your commercial property, is essential if you’re seeking funding from a bank or investors, and is especially important if you operate in a dangerous or potentially litigious field of work.
But even smaller businesses operating from home – cosmetics, catering or childcare for example – should consider some form of business insurance, as the risks they could encounter could be catastrophic and legally risky.
…having business insurance in place protects the value of your commercial property…
There are 5 ways that business insurance can protect your investment:
1. Commercial Property Insurance
As owners of commercial property – whether tenanted or owner occupied – protecting your property investment from disaster is a major priority. Commercial property insurance is a practical solution for anyone who manages a business that owns assets, employs people, and could be seriously affected by disaster or breakdowns. With Commercial Property Insurance, any buildings your business owns are covered in the event of damage due to theft and fire as well as some natural disasters.
2. Business Interruption Insurance
Having already invested considerable time and money into growing your business, protecting it at all costs makes perfect sense. If your business is unable to operate due to a physical loss you have incurred, Business Interruption Insurance could help you get back to work faster. With Business Interruption cover, you could be compensated when you’re unable to open for business because of an operational disruption.
3. Public Liability Insurance
For loss or damage to other people’s property, or illness or injury that is not covered by the Accident Compensation Commission (ACC), if you have clients who visit you onsite or you work at a client’s site, protect your business with Public Liability Insurance. You’ll be covered if a client or member of the public suffers a loss, damage to property or injury because of your business’s day-to-day activities.
4. Professional Indemnity Insurance
Law suits can cost you both time and money, and seriously damage your reputation. Protect your good reputation with Professional Indemnity Insurance. It’s designed for professionals who provide advice to clients, so that you’re protected if someone alleges that you’ve made a mistake and they’ve suffered a financial loss as a result of your mistake, and are now seeking legal advice to recover that financial loss.
5. Cyber Liability Insurance
Network attacks and cyber security are fast becoming a significant global issue. In our 24/7 online world, most businesses face a cyber-attack at some point in time. With substantial financial consequences to businesses, including costs to fix viruses or to pay ransoms, loss of revenue from lost data or IP, Cyber Liability Insurance is more important than ever. With Cyber Liability Insurance, you’re covered if your systems are hacked or held to ransom, be that via a data breach, virus, or ransomware.
Helping businesses grow
Business insurance is a blend of different types of coverage designed to meet the needs of your business. Bundling all of your assets into a business insurance package is a smart thing to do, making it easier for you to manage.
Wherever you are in New Zealand, and whatever business you’re in, Astute GI can assist you with customized business insurance options to protect your business. With access to a wide range of insurers, knowledge of policies and processes, and a team of professional insurance advisers, Astute GI makes insurance simple and easy to understand.
With just one point of contact for changes, claims and enquiries, and the ability to offer you solutions to all your General Insurance needs, no matter what type of insurance you’re after, contact us today to speak to our team.
Jay Areora
General Insurance Specialist
Astute Financial Management Limited