Reviewing your business insurance

Why it’s important to review your business insurance after a turbulent year.

New Zealand is a nation of small businesses. In fact, there are approximately 530,000 of them in the Land of the Long White Cloud, representing 97% of all firms. [1]

And lately, they’ve been doing it tough. New Zealand’s sporadic yet stringent lockdowns over the past 18 months have changed the operating conditions for many small businesses. 

When the first Alert Level 4 hit last year, revenue for small businesses fell by 10% in March and 34% in April. [2]

Yet when restrictions lifted, New Zealand experienced a jump in the number of new businesses listing on the NZ Companies Register, with more than 38,500 listed between May and December, up 20% the same time last year².

Us Kiwis are an optimistic bunch. And despite the return to lockdowns recently, optimism for the future remains strong among the population. [3]

Despite this hopefulness, the fact remains that the pandemic is far from over and businesses may still suffer from a lack of continuity. 

BizCover General Manager Brad Miller says the company’s expertise with insuring small businesses has helped understand the pressure some New Zealand SMEs are under.  

“It’s a tough time for many small business owners. That is why at BizCover, we want to be as adaptive as possible and help our business insurance customers where we can,” says Miller. 

“We’ve implemented several measures during the COVID-19 pandemic to be more adaptive and flexible to the often-changing situation.”

From deferring monthly payments and offering extensions to prolonging opening hours and working with insurers to expedite claims, BizCover wants to ensure business owners had one less thing to worry about during lockdowns. 

“More than anything else, we want to ensure our customers have the right cover in times like these so they can get back to running their small business.”

When should you review your business insurance?

While BizCover can help make the process easier during difficult times, businesses may still open themselves to unnecessary risk if business circumstances have changed. 

“The commercial world changes every day, if not every minute of the day depending on the industry one finds themselves in,” says BizCover NZ Country Manager Darrin Barclay. “With change comes opportunity but also risk. The risk profile of any commercial entity is never static and needs an annual review.” 

Your revenue may have changed, or perhaps you have taken on new staff or have gotten new equipment. You might have begun dealing in a new line of product or changed a business process of delivering services to your customers.

Whatever the case, your business may not be the same as it was when you started, and your insurance should keep up with the times.

“The biggest mistake business owners can make is to get ‘comfortable’ and think no review or focus is required. This would include rolling over your business insurance policies without reviewing the cover and limits,” says Barclay. 

“These changes can have an impact on your insurances. It is important for you to disclose all activities and get confirmation from your Insurer that you are covered for these. If an activity is not disclosed you may not be covered in the event of a claim.”  

Fortunately, there is an easy way to remove this risk and ensure you are adequately covered. “Jump online to check out your policy or give BizCover a call to discuss any changes,” says Barclay.

“Every business should review their covers annually at a bare minimum. Truly dynamic enterprises might need to do it more often.”  

It’s time to shop around for a better deal

“One important reason to look at your insurance is to check that the price you are paying is still competitive,” says Barclay. “We’ve had many customers save on their insurance by switching to BizCover, including a management consultant from Glenorchy who saved $700 on his Professional Indemnity Insurance.”*

Operating a small business during a global pandemic is stressful. Luckily, with BizCover, your business insurance doesn’t have to be. So, if it’s time to review your insurance, visit bizcover.co.nz and start comparing quotes from selected leading New Zealand insurers.

*Savings made September 2021. 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 page is general only and should not be relied upon as advice. BizCover Limited is owned by BizCover Pty Ltd (ABN 68 127 707 975)