Is it time to give your retail business an insurance health check?  

From supply chain issues to chronic labour shortages and the Covid-19 pandemic, New Zealand retailers have had a tough run with so much disruption in recent years.

And now it seems the $19.5bn retail industry that employs more than 220,000 New Zealanders will have to deal with customers tightening their purse strings as consumer confidence falls to its lowest reading ever recorded in July.

With the growing pessimism around the economic landscape, business conditions are shifting for retailers across the country.

With so much change, there is a fair chance the risk your retail business faces has also changed, and it may be time to give your business an insurance health check.

Here are three factors to review to ensure that your insurance adequately covers your business for material risks or any claims that may arise.

Your workforce has changed  

Small businesses are barely ever stagnant, which often influences the size of their workforce. After coming out of lockdowns into a worker shortage, retail businesses may have a drastically different team than when they last renewed their insurance.   

If your workforce has shrunk since you last reviewed your policy, you could adjust your insurance to better suit its current size. Conversely, if your business has grown and your workforce has increased, you may need to consider updating your cover. 

Whatever the case, it’s important to ensure your insurance covers your current workforce. 

The risk to customers and suppliers is different 

If you interact with your clients in a physical environment, there are many risks you may come up against. 

Understaffing and untrained workers could lead to situations where safety protocols aren’t properly followed, resulting in a higher chance of an accident.

For instance, if a customer or supplier trips at your workplace and suffers an injury, a claim could be made against you.  

While you could always provide extra training, you may also need to ensure you have adequate Public Liability cover*, which is designed to provide protection from third-party injury or property damage.  

The risk to your business itself has changed 

Your customers are important, but so is your stock, equipment, and commercial premises. From fires to theft, the risk to your assets could have changed since you reviewed your policy.  

Business Insurance* is a package designed to provide cover for these assets from risks such as fire, storm, theft, or accidental damage. It can even cover your portable equipment, glass and for loss of revenue due to a business interruption in specified circumstances. 

If you’ve made any internal changes to your business premises or something has increased the risk externally, you might need to consider updating your Business Insurance policy.  

Review your policy today  

Insurance is there to protect you from the current risks you face. By not giving a business a health check every now and then, these problems could become a lot worse if a claim were made against you.  Even if you do have cover in place, doing a review of your insurance could help you save on your premium. 

*This information is a general guide only and does not take into account your objectives, financial situation or needs. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this article is general only and should not be relied upon as advice. © 2022 BizCover Pty Limited, all rights reserved.  Public Liability Insurance is a trading name of BizCover Limited.  BizCover Limited is owned by BizCover Pty Ltd (ABN 68 127 707 975).

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