What Is 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.
There are a variety of different Business Insurance options available, designed to protect the various risks that businesses face. From dog groomers to personal trainers, IT specialists and real estate agents, Business Insurance provides coverage for many different types of small businesses.
Why do I need Business Insurance?
As a business owner there are so many components that go into running your small business. You put your heart and soul into keeping your business going, as well as time and hard-earned money. Even for the most organised and responsible small business owners, accidents and incidents can happen in a flash. A claim is the last thing you want to be faced with, and that’s where Business Insurance can provide peace of mind.
These are some of the typical reasons why you would consider Business Insurance:
- The financial impact of a claim- one of the biggest things Business Insurance provides is financial protection in the event of a claim. Can you imagine the financial devastation if your business premises (that you own) and contents were destroyed in an insurable event like a fire^? Would you be able to rebuild and replace everything with your savings?
- It may be a requirement- Business Insurance can sometimes be a requirement, for example if you are renting a shopfront, Glass cover* may be required by your landlord as part of your rental agreement.
- It can help protect your reputation- if your business relies on certain equipment or tools to perform your job, like tradies and photographers for example, you can’t be caught without them. If your tools of trade were lost or stolen, not only do have to find the spare funds to replace them but you won’t be able to complete your current and future jobs. This could lead to loss of business and doesn’t create a very professional look for your business’ reputation.
What are some of the types of Business Insurance?
Let’s take a look at some of the typical types of Business Insurances and how they can help to protect your small business.
Covers the cost of repairing or reconstructing buildings your business owns as a result of fire and other perils. Includes protection for things like fixed signs and lettering, tanks, poles, power lines and their supports, walls, gates, fences and landscaping
Optional cover for natural disasters, including earthquake**
Protecting your business assets is an important form of cover to consider when insuring the things that keep your business running.
Property (Contents) insurance covers physical loss or damage to your insured contents as a result of an insured event (such as fire, storm, flood and other perils). Property/Contents can include fixtures and fittings, equipment, stock and furniture.
Property insurance may also include cover for:
- Glass: covers for the breakage of internal and external glass and signage you own or for which you are legally responsible, at the insured premises.
- Money: protects your business money from loss or damage whilst on your premises or in transit.
- Theft: covers you against loss and damage as a result of theft or attempted theft from your business premises. Damage to the building, locks and safes as a result of a covered event will also be covered.
- Transit: covers loss of or damage to your goods (or in some circumstances goods you are responsible for) while in transit in New Zealand in a vehicle owned or operated by you, caused by an insured event such as collision, fire or theft.
- Equipment breakdown: covers for sudden or accidental breakdown of mechanical, electrical or electronic plant and equipment.
- Seasonal stock increase increases the sum insured by 20% during November, December and January for insured stock you have.
- Stolen keys: covers the cost to alter or replace any locks or keys because they were stolen or illegally duplicated.
- Optional cover for natural disasters, including earthquake**
Covers you for the loss of income and some of the increased costs of running your business as a result of interruption caused by events covered under your policy.
Optional cover for natural disasters, including earthquake*
*Cover for natural disasters is subject to the location of your business and is not available to all postcode areas.
#Sub-limits and conditions apply. Refer to the policy wording.
- Covers loss or damage to portable equipment, tools and valuable property anywhere in New Zealand.
- Select your own cover limit
- Covers loss or damage of laptops and mobile phones anywhere in the world
What is typically covered and not covered with Business Insurance?
What it typically covers
- Material damage loss for your physical assets
- Financial loss due to Business Interruption
What is NOT covered?
- Negligence/breach of duty arising from an act, error or omission as a result of your professional services
- Claims arising from damage to third party property or personal injury
- Known claims and circumstances
What kind of businesses need Business Insurance?
Different types of businesses will be exposed to different kinds of risks, but here are some examples of the way Business Insurance can help protect various businesses.
Retailers – if you own your business premises, you may want to consider protecting your biggest business asset with Building insurance. You may also want to look at protecting things like your stock and business assets with Contents insurance.
Tradies – your tools of trade are essential to your business, so it makes sense to protect them with Portable Equipment or Tool insurance. This will provide cover for tools if they are lost or stolen anywhere in New Zealand
Professionals – things like your electronic and specialised equipment can quickly add up. When you are out and about visiting clients, protect your valuable business assets with Portable Equipment insurance.
How much does Business Insurance cost?
Every business is different, with their own unique exposure to risks and challenges which makes the pricing of Business Insurance policies specific to the individual business. There are a range of factors that are taken into consideration when calculating the cost of a Business Insurance premium, some of these factors include:
- Your claim history
- The type of business operations you perform
- Your annual turnover
- The number of staff
- Level of cover
- Claims history
What’s the difference between Business Insurance cover and Public Liability insurance?
The different kinds of coverage options that Business Insurance offers are designed to protect things like your business assets. Where 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.
They are designed to safeguard your business from different risks, and together can provide your business with comprehensive coverage.
Get more information
If you would like to find out more about Business Insurance and all things small business-related check out our blog. It’s full of insightful and useful articles to help inspire and educate.
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In this article we take a look at all the typical types of business insurances you need to consider as a small business owner. We look at what they cover and what you need to look out for when looking at protecting your business.
You put everything into making your small business work, so it makes sense to take the right steps to try and protect it the best way you can. Our guide takes a look at 10 ways that you go that extra mile and help protect your small business against unwanted challenges.
* 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.
^ The provision of the claim’s examples are for illustrative purposes only and should not be seen as an indication as to how any potential claim will be assessed or accepted. Cover for a claim will depend on the specific circumstances around the loss and would be subject to the terms and conditions of the policy concerned.
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