Many things about running a business can keep you awake at night; difficult customers, poor-performing employees, slowing growth, the list can be endless.
But the reality is, most all these things are par for the course in business, and should really be expected at some point in the journey. This brings us to this week’s GROWisdom, which comes straight from the 90’s through the dulcet tones of movie producer Baz Luhrmann. “The real troubles in your life are apt to be things that never crossed your worried mind. The kind that blindsides you at 4pm on some idle Tuesday.”
Or as we saw in Auckland last week, on a Friday evening as an unprecedented deluge drenched the Auckland region, causing floods, slips and more, and then spread further out to other regions.
I am pretty confident most of us didn’t go to sleep on Thursday, the 26th of January, 2023 concerned that a major weather event the next day could cause so much disruption.
What provides peace of mind, a safety net and lessens the impact of these unexpected events?
Insurance.
If your business is accidentally subjected to, or causes, millions of dollars of damages, could you afford to cover the costs?
If the answer is no, there is a real risk you could go bankrupt. Business insurance is crucial for protecting a business and the business owner if unforeseen events occur.
Read on for some top tips on avoiding insurance pitfalls, as well as two exciting new Grow announcements that can ensure you arrive in the land of nod in no time.
No sheep counting required.
So, you think you know insurance?
Insurance is all about risk management; making sure you’re able to recover from a loss or protect yourself from liability if the unexpected occurs. But there are some things you should consider when taking out insurance to ensure you have the right cover in place. Here are some important facts about business insurance every business owner ought to know.
1. Insurance policies and costs can vary widely: Every business is different with its own unique set of needs and insurance policies can vary widely from basic cover to comprehensive cover for more complex business needs. For this reason we recommend working with an experienced insurance broker to get insurance solutions that are tailored to your own unique circumstances.
2. Many Kiwis under-insure their business: It’s not fun shelling out cash for something you hope you will never need. But it’s even less fun facing the consequences if you don’t. Having the right insurance protection in place could be the difference between business survival or not. Insurance is a necessary expense and can help protect everything you’ve worked hard for. With this in mind, it’s important to recognise that business insurance is not something to go cheap on. You get what you pay for and under-insuring your business could see you end up with the same result as not having any insurance at all. So make sure you are fully covered.
3. What you need depends on your business and your industry: Beyond basic cover for business property, such as vehicles and equipment, there are three types of insurance that every business should seriously consider – General Liability insurance; Directors & Officers insurance; and Business Interruption Insurance.
General liability insurance covers damages your business may cause to others in the event of an accident. Directors & Officers insurance protects directors and senior management from being held liable for oversights, decisions or actions taken while carrying out their regular duties on behalf of their company. Business Interruption covers you for a physical event that damages your property and stops you carrying out business as usual – you can claim for profits you would have earned, for operating costs like wages, and for other expenses you’re still incurring while your business is out of operation.
Some professions, such as financial advisory, accounting, law and insurance brokerage make it compulsory to have Professional Indemnity insurance as well. Chat to a trusted insurance broker for more information on what insurance solutions are best for your particular profession.
4. There’s more than one way to purchase insurance: Business insurance is usually purchased through an intermediary like an insurance broker, or by going direct to an insurer. Some insurers now also transact online. We recommend the use of an intermediary who has access to different insurers and can recommend the best cover for you in a cost effective way.
5. Hundreds of claims every year are rejected: Hundreds of business owners each year find themselves in the unenviable position of having their claim rejected because they weren’t fully covered. To reduce the chance of this happening to you, it’s important to understand just what your policy covers you for. This is where an expert insurance broker can help you. Some insurance brokers will also manage your claims process for you to ensure you get the best possible outcome.
Grow NZ Business via it’s trusted partner Rothbury Can Help You Mitigate Risk
Insurance from Kiwis who love Kiwi business
Grow NZ business is a long-term partner of award-winning local NZ insurance brokers, Rothbury Insurance Brokers.
As part of the partnership, all Grow NZ business members have access to Rothbury’s industry award-winning insurance broking expertise and claims advocacy services. Members will also benefit from receiving localised service from its 20 branches throughout the country.
We chose to enter into a partnership with Rothbury to add additional value to Grow NZ’s 8,000 plus members. Rothbury has exceptional client satisfaction scores, numerous industry awards and an extensive reach across New Zealand.
We are confident Rothbury can offer unrivalled personal service and quality advice to help our members grow their business.
Working alongside Rothbury is a natural fit as our two companies share similar values and the same ultimate end goal; to support New Zealand businesses.