Maybe you’re finally taking that leap and starting your own business, or maybe you’re a well established set up that knows a thing or two, wherever you are with your journey, business insurance is something you’ve probably come across.
Our guide takes the guess work and some of the confusion that comes with getting your business insurance sorted, with the aim to help you save some time and some money for the long haul.
These are some things to ask yourself when it comes to protecting your business with business insurance.
What are some of the risks my business might be exposed to?
The risks and kinds of activities that a mechanic performs is going to be different to say an accountant, so understanding what risks will affect your business may help when determining the kinds of business insurance policies will be appropriate for your business.
Not sure of the kind of risks? Here’s a few things to consider:
- What type of services, work does your business perform and provide?
- Where is your business located? Do you have a bricks and mortar office/ warehouse, work from home, rent a space or operate online?
- How do you interact with your customers, is it online or in person? Do they visit your business premises?
- What resources do you rely on to help get the job done? Think about the utilities, equipment, machinery and technology do you need to effectively run your business?
What kinds of business insurances might my business require?
Once you have a better understanding of what some of the risks your business may be faced with, it’s time to look at the different kinds of business insurance options that may be available to protect your business.
Depending on the type of industry your business operates in, there may also be legislative requirements, industry body or membership requirements for your given occupation, as well as requirements under the condition of your lease.
This is a quick overview of some of the different types of insurances that your business may require:
Public Liability insurance*: Public Liability insurance is designed to provide protection for you and your business in the event a customer, supplier or a member of the public are injured (and not covered by the Accident Compensation Commission (ACC) ) or sustain property damage as a result of your negligent business activities.
Professional Indemnity insurance*: Professional Indemnity (PI) insurance is an important form of protection for businesses that provide specialist services or professional advice. It is designed to respond to claims against your business for losses as a result of actual or alleged negligent acts or omissions in the provision of your professional service or advice. PI Insurance will also assist with the legal costs associated with responding to or managing claims which are covered by the policy.
Business Insurance*: Business Insurance is an insurance package designed to provide cover for your business contents, stock, tools and commercial premises when an insured event occurs (such as fire, storm, theft or even accidental damage). A Business Insurance policy can also cover your portable equipment, and loss of revenue due to business interruption in specified circumstances.
Portable Equipment insurance*: Covers you for loss and damage to your tools and equipment due to theft, fire and other perils listed in the wording, anywhere in New Zealand.
Cyber Liability insurance*: Covers you for losses from claims arising from data breaches, business interruption and remediation costs following an actual or threatened data breach.
Understand your policy’s terms and conditions
Not all insurance products are the same, varying from one insurer to the other, which makes it important to double check your terms and conditions of your cover. These are usually outlined in the Product Disclosure Statement (PDS).
The PDS will state what the policy doesn’t provide cover for (Exclusions), optional cover that is available (Extensions), and any monetary limits on items that are covered.
It’s important to understand what exactly you are covered for and what is excluded. ‘Exclusions’ refer to certain acts, people, property, types of damage or locations for which a claim can’t be made. Typical exclusions may include (but are not limited to) loss or damage due to intentional acts; war or terrorism; and events that occur outside territorial limits.
An ‘Extension’ provides cover for losses that fall outside of the normal conditions of the policy which comes at an additional cost
‘Limits’ or ‘Sub-limits’ refer to the maximum amount payable for a particular event or item that is covered under the policy. Business insurance policies commonly contain sub-limits, which specify certain amounts.
Where can I buy business insurance?
On top of the million other things that you need to take care of and manage, researching business insurance policies is probably something you don’t have countless hours to spend time doing. That’s where BizCover can help.
Once you have a rough idea of the type of policies your business may need, let us get your cover sorted without the dramas. We don’t believe in paperwork or complicated insurance lingo, just easy, online insurance at the click of a button.
Visit bizcover.co.nz and get insurance for your small business without the stress so you can get on with your day. If you’d prefer to pick up the phone and chat, you can find us at 0800 249 268.
*This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. © 2023 BizCover Limited.