Learn about business insurance in New Zealand, such as what business insurances are available.
Business insurance can help mitigate risk and includes cover for:
- Accounts receivable
- Buildings and contents
- Business interruption
- Business vehicles
- Liability or professional indemnity
- Workers’ compensation
Accounts receivable insurance
Your accounts receivable is usually one of the most valuable aspects of your business. Much can be tied up in the form of credit for customers.
You can insure your trade receivables with trade credit insurance. This is a debtor insurance where the insurer pays up to 90% of your invoice value if your customer goes bankrupt or fails to pay for any other reason agreed with your insurance company. Many businesses also use credit insurance to help them secure finance, attract new customers with favourable credit terms and minimise risk when entering new markets.
Atradius New Zealand provides tailored credit insurance solutions for businesses of all sizes from SMEs to global multinationals. We support businesses that trade domestically and internationally, as well as organisations that need to insure long term projects with non-cancellable limits.
Commercial buildings and contents insurance
Buildings and contents insurance for business typically applies to risks such as burst pipes, fire and theft. Depending on the policy it could also protect businesses from the risks of riots, storms and subsidence. Buildings and contents insurance usually covers the cost of repairing or rebuilding business premises and replacing equipment and stock. Some insurers also offer insurance for specific tools and equipment such as technology or plant machinery.
Business interruption insurance
If your business goes through a disaster, you may also experience a loss of income. For example, you may need to cease trading while you rebuild or refurbish business premises that have been damaged by fire, flooding or another disaster. Your buildings and contents insurance will typically only cover you for the loss to your physical assets. Business interruption insurance will cover you for losses incurred to your income while you are unable to trade and is often an add-on offered by buildings and contents insurers.
Business vehicle insurance
This covers the loss or damage to other peoples’ vehicles or property caused by your drivers. Commercial motor insurance often covers a fleet of vehicles and, depending on the policy, typically includes benefits such as replacement vehicles and cover to personal property.
Liability or professional indemnity insurance
There are several types of liability insurance, covering areas such as public liability, management liability and product liability. All cover your business in the event of harm to another person or business. Professional indemnity is an insurance that covers breach of contract or professional malpractice.
Workers’ compensation insurance
This is also known as staff injury and sickness insurance. It covers work-related accidents or illnesses and ensures workers don’t suffer from financial hardship as a result of a workplace accident.