Is your Business Covered if Disaster Strikes?

by Joanne Svendsen | 11-10-2018


Dramatic events, such as earthquakes and floods, tend to bring life sharply into focus.  Your business is both your job, and your ability to look after your family.  The stress of business income loss, and the costs of getting operational again can be significant.  It would be prudent to invest in a back-up plan and protection, should the worst happen. 

Whether you are a sole trader, contractor or run a company, you need to guard against work and business risks.  It is wise to insure your business to protect you should something go wrong

There are many types of insurance (some industry specific) to choose from, so the key is finding out what cover is the best fit for you.

While natural disasters are one of the risks businesses face today, there are others to consider, including:

  • Replacing damaged stock – doubly devastating, particularly if you’ve not yet paid for it
  • Replacing plant and equipment due to damage or failure
  • Damage to company vehicles
  • Damage to property, or injury to people, caused by you or your staff
  • Loss of profits should you be unable to operate because of a disaster such as fire, flood or breakdown
  • Loss of business income if you become ill or suffer an accident
  • Theft by employees or customers
  • IT hacking, data breaches, cyber attack
  • Product recalls
  • Employment disputes
  • Breaches in Health and Safety regulations

6 key things to consider when organising insurance for your business:

1. Review your insurance cover annually, or as your business changes, to make sure you are adequately protected.

2. What excess are you willing to pay? 

This is the amount of money you agree to pay towards repairs. Generally the lower the excess the higher the premium (the annual cost of the insurance).  Things to consider when working out your excess:

  • How much risk your business has
  • How likely risks are to occur
  • What the potential cost of losses are

3. What type of policy?

  • Indemnity: the most common policy type, which takes into account wear and tear when paying your claim.
  • Replacement: this pays full costs of replacing an item.

4. Talk to a specialist such as an experienced insurance broker who can help find policies that suit your specific requirements.

5. Read and understand the fine print so you don’t get a nasty shock - get your insurance broker to explain the technical terminology.

6. Disclosures are legal requirements – if you don’t tell the truth, you’re risking not having cover.

Buy your business insurance online with BizCover

n3 Supplier BizCover operates New Zealand’s leading online business insurance site.  Their online platform allows business owners to compare quotes quickly and easily, then select and buy the right policies to suit their specific needs.  BizCover has created a Business Insurance Pack, providing tailored cover for a range of business assets – with the option to include Business Interruption cover –  to get you back on track after an insurable event.  Underwritten by AIG, the BizCover Business Insurance Pack provides cover for

  • Commercial property and buildings
  • Contents and stock
  • Portable equipment including tools, laptops and mobile devices
  • Natural disasters
  • Automatic inclusions such as glass, cash, theft, goods in transit and flood in eligible areas

To find out more about how BizCover and n3 can help you with your business insurance, contact us on 0508 20 30 40 or flick us an email at



Unless you’ve had the misfortune of having a disaster strike your business, it’s difficult to grasp how devastating the effects can be.  Unless you’ve had the misfortune of having a disaster strike your business, it’s difficult to grasp how devastating the effects can be.


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