If you own a small business, there’s no denying one of the most important things you need to protect is your business assets with Small Business Insurance. But what kind of insurance do you actually need?
There’s no ‘one-size-fits-all’ when it comes to insuring a business, just as there are no two businesses that are exactly the same. Your insurance needs will vary depending on a variety of factors, such as, the industry you operate in, your trade, and the type of business you run. It will also be influenced by the size and location of your business and your appetite for risk.
A tradie will face different challenges and risks, to say, a real estate agent, coffee shop, or an engineering firm. Just as a mobile or home-based hairdresser will have varying needs to those of a salon owner who has a shop front.
However, one thing’s for certain, and that is, finding the right insurance is an essential part of managing the risks involved in operating your business. And let’s face it – all businesses confront an element of risk on a daily basis, regardless of their size or the industry they are in.
It’s also important to note that some types of insurance are compulsory for many kinds of businesses, whether it’s a legislative requirement, an obligation as a member of a professional board or association or required by a contract you enter into with a landlord or a customer.
Fortunately, these days there are a variety of policy options to choose from and business insurance policies can be tailored to suit your individual business needs.
Every business needs to consider Public Liability Insurance – even home-based businesses. It covers 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.
Public Liability not only covers the cost of compensation, but your defence costs as well. Without the correct level of cover, a potential claim could cost you thousands of dollars (or even hundreds of thousands of dollars), and could be enough to put a small business out of business!
If your business or profession involves providing a service or advice, then Professional Indemnity (PI) Insurance is a type of cover you may need to consider.
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
Your Public Liability policy does not provide protection if there is financial loss only or if the cause of the loss was a breach of professional duty, so it’s important you know the difference.
Professional Indemnity Insurance is applicable to many professions, such as chiropractors, consultants, engineers, architects, real estate agents, and accountants, just to name a few. In many professions, it is a requirement to hold a PI policy in order to render your services.
Each industry has its own unique set of risks which can be addressed in a policy tailored specifically for your profession.
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.
These are some of the different types of business insurance coverage options that are available:
Building*: Covers physical loss or damage to your insured buildings as a result of an insured event (such as fire, storm, flood and other perils).
Property (contents)*: Cover for loss of or damage to items such as business equipment, stock, plant and machinery, records, fixtures and fittings and furniture belonging to you at the insured location.
Business Interruption*: Business interruption insurance provides cover for the loss of income and increased costs of operating your business caused by a specified insured event (such as property damage or fire). It is also designed to assist your business to recover from an insured event by paying ongoing expenses (such as wages or rent).
Portable Equipment*: 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.
Employers Liability Insurance protects the company and the people who manage the company, such as the Company Director and Senior Managers, against the risks and exposures of running the business – your liability for mismanagement.
It protects you against settlements or damages, including defence costs, as a result of an employee suffering bodily injury arising out of their employment (where the Accident Compensation Commission (ACC) does not provide cover (such as gradual impairment injuries).
Without sufficient protection, you could potentially risk losing not only your business, but your personal assets too.
If you have a website for your business or you store sensitive customer information on your computers or laptops, you should think about holding a Cyber Liability policy.
against both the legal costs and expenses (including compensation payments) related to cybercrime
incidents. Your coverage may generally include cover for expenses and legal costs relating to the
- Data breaches
- Theft or loss of client information
- Business interruption costs
- Forensic investigation
- Data recovery
- Fines and penalties
- Crisis management costs (to restore your businesses reputation after an attack or data breach)
- Legal costs from any ensuing civil action taken against you or your company
Statutory Liability insurance protects you, your business and your employees against certain
unintentional breaches of some New Zealand laws (not criminal laws though). It will also cover the
costs of representation related to investigation costs for alleged breaches, as well as defence costs,
and fines or penalties payable following a conviction, where the underlying law allows for fines to be
paid by Insurers.
Protect your business
You put in the hard yards to build your business, so it only makes sense to have a plan in place to protect it. Having the right types of business insurances in place not only gives you peace of mind, but it helps to keep your business protected for the long haul.
Whether you’re an accountant, a tradie or a hairdresser, at BizCover we offer a range of business insurances from a great range of trusted leading insurers. We know how busy you are running your own business, so let us do the shopping around for you, providing multiple quotes in minutes.
We don’t believe in complex forms and messy paperwork, just insurance made easy with no dramas!
* 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 web page is general only and should not be relied upon as advice.