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November 24, 2021UncategorizedUnderinsurance is a common concern that can result in a variety of financial troubles for the policyholder. Underinsurance, in business terms, occurs when a policyholder is left with insufficient insurance coverage, leaving them accountable for a greater percentage of the overall loss experienced. Underinsurance is a significant issue for New Zealand’s small business owners, sole traders, and insurance carriers. This can result in lower claim settlements for company owners. It will result in you being out of pocket following a claim. You’ll want to avoid being a victim of underinsurance. Insurable gross profit is a more complicated assessment that takes opening and closing stock, work in progress, and uninsured operating expenditures into consideration. Become familiar with the Total Cost of Risk. Businesses can only make educated decisions about how to manage their risks and avoid underinsurance if they understand the Total Cost of Risk (TCOR). However, there are still misconceptions concerning TCOR, with the majority of consumers believing it just relates to insurance premiums. TCOR is determined by the insurance premiums, direct and indirect expenditures, and risk management expenses of a business. Brokers can assist their clients in becoming more educated about TCOR and the critical role it plays in enabling judgments regarding the trade-off between self-insurance, insurance, and risk management investment. Businesses (manufacturers, wholesalers, warehouses, etc.) Similarly to the preceding guidelines, you should assess the possible interruption to your business caused by the duration of the rebuilding phase and subsequent restoration of trade to pre-damage levels. In the worst-case situation, you may be prevented from trading until the property is rebuilt. During this time period, you may see a complete or significant decline in revenue and may also lose consumers. How are you going to pay your invoices and ongoing overheads? How long do you anticipate it will take for your firm to recover? You should discuss this recovery time period with us so that we can decide the appropriate indemnity period for you. This is critical because once the indemnity term has expired, claims payments would halt. Accurate value your firm and its assets Being proactive and regularly reviewing your insurance is critical, since conditions in a business setting can change rapidly, and you run the danger of being underinsured. Once you’ve purchased your business insurance policy, you should consider if you’re making large purchases or obtaining contracts in an area where exchange rates may be a factor, as you’ll want to consider the flow-on impacts to your insurance values. Additionally, it is smart business practise to monitor any internal business changes, whether they include improving equipment, systems, or procedures, growing inventory or premises, or investing in new employees. How can you make a claim if you are underinsured? When a piece of equipment or inventory is damaged, your insurance provider will determine the entire worth of your assets and inventory. They will compare it to the amount of commercial insurance you have acquired. If your commercial property and assets are worth $400,000 and you insure them for $200,000, or 50% of the total value, they will likely pay just 50% of the cost of repair or replacement after you pay an excess. Similarly, if you obtain public liability insurance for a business with a $2 million limit of indemnity and incur claim and defence costs in excess of that amount, you will be responsible for the excess amount. How a broker can be of assistance The good news is that you can obtain enough coverage for your business without dedicating numerous hours to learning about insurance’s finer elements. You can delegate the assignment to an insurance broker. He or she can create a competitively priced insurance to safeguard your organisation against big dangers. Contact us and we are happy to discuss and explain what the right insurance policy and coverage is required for your specific business needs. [...]
November 11, 2021Business InsuranceWhen starting a new business, one of the most critical considerations is ensuring that your personal assets are protected from corporate responsibility. Without the necessary safeguards in place, your personal assets, such as a home or a retirement fund, may be exposed to claims by business creditors or any court judgements against your business. To mitigate the possibility of this occurring, every business owner should consider many asset protection techniques. Many businesses, particularly currently in the midst of the COVID-19 pandemic, have been forced to close their doors indefinitely due to the virus’s breakout. This has led in decreased earnings, income loss, and several layoffs. Borders are closed, and some commodities are prohibited from entering or leaving the nation. Supply lines are destroyed, suppliers are unable to collect payment, and enterprises are unable to repay their debts. Therefore, if you haven’t already protected your company assets, now is the time to do so. Types of Assets By definition, a so-called risky asset presents a significant risk of liability. Rental real estate, commercial property, business assets such as tools and equipment, and motor vehicles are all examples of risky assets. On the other hand, safe assets do not encourage a high degree of inherent liability. Stocks, bonds, and privately held bank accounts do not inherently include much risk. Due to the minimal chance of danger, safe assets may often be owned by a person or a single business. However, risky assets should not be mixed with other dangerous assets or with safe assets. Separate ownership of harmful assets reduces the risk of loss from a single item. How do you safeguard your property? It is prudent to begin risk management for your assets by recording what you possess and mapping out potential threats and weaknesses against each asset. To minimise hazards, you should take the following steps: maintain an inventory of all assets conduct routine asset inspections, including stock and inventory checks conduct a risk assessment for various asset classes when necessary, restrict access to assets such as shares, cash, or data establish sound risk management methods protect your intellectual property rights by registering them and enforcing them when necessary, implement preventive security measures undertake routine asset and management practises evaluations create disaster recovery and business continuity plans   Safeguarding business data You should do a risk assessment and take precautions to safeguard your physical and information assets. Typical dangers include the following: cybercrime – harmful parties may obtain access to your networks and change, steal, or erase data – risk management for cyber security viruses – malicious programmes designed to disrupt or destroy computer systems – identify spam, malware, and virus assaults fraud – the theft of sensitive data, such as personnel records or valuable intellectual property, by hackers or even your own workers – data breach and theft at your firm data loss – as a result of any of the above or as a result of hardware failure – as a result of a flood at your premises, for example. Small efforts can contribute to an enhancement in data security. For instance, all computers should be password protected and equipped with an internet firewall and anti-virus protection. Employees who routinely use computer equipment should update their passwords and periodically back up their information. Any data stored on electronic equipment should be duplicated and securely stored off-site and in a fire-resistant safe. Insure the assets of your business Asset insurance can assist you in recovering from unforeseen events and covering the expense of replacing lost, stolen, or damaged goods. You may insure a variety of different sorts of assets, including the following: commercial space and real estate cash and credit contents of the business, such as inventory, machinery, and equipment. Information technology systems (against cybercrime) goods in transit commercial automobiles Business insurance is a wide phrase that encompasses a variety of products, including liability insurance, property insurance, and business interruption insurance. It’s primarily intended to safeguard your business’s property and give liability protection in the event of a lawsuit. Regardless of the size of your business, it is critical to have comprehensive business insurance. We specialise in business insurance products. Over the last 30 years, we have arranged policy cover to suit a diverse range of risks for different industries. Contact us to secure an insurance policy suited for your unique business needs. [...]
October 25, 2021BusinessWhile huge corporations may appear to dominate news, it is small company entrepreneurs that embody the Kiwi ideal. Small companies, which symbolise opportunity and independence, are the backbone of the New Zealand economy. Perhaps you’re considering joining their ranks as a first-time company owner. We understand that the initial steps towards entrepreneurship can be both exciting and perplexing, so we designed a short start-up checklist for aspiring small company owners. Using this small company checklist, you can evaluate which issues are necessary to address before establishing a firm. Do your research Before you start your business, you need determine if it is feasible. That is, does it have the capacity to succeed? After all, you wouldn’t want to put your heart and soul into a firm that has a slim possibility of succeeding. One of the first stages in getting your business off the ground is to conduct some market research. You should research the following topics: Who your potential consumers are and what problem you plan to address for them These potential customers’ preferences. How are they going to discover you, and how do they want to communicate with you? What are their likes and dislikes? Your rivals’ names, as well as their strengths and shortcomings What it’s like to establish a company in your neighbourhood. What are the procedures and rules you’ll have to follow? Your neighbourhood’s market. Is there a market for your product or service, or is the market saturated with comparable items and services?   Create a business plan A business plan will instruct you on how to run your small firm. It also assists you in developing strategies for boosting your sales and client base. Your business plan might be basic or complicated in form, but it is fundamentally a document that explains your financial goals and how you intend to accomplish them. Because a business plan describes how you intend to achieve your objectives, you can share it with potential investors to help you get financing for your company. It can also assist you in attracting partners that can assist you in growing your business. Set up a financial plan Following the creation of a company strategy, you must determine how you will manage your money in order to pay expenses and get paid. It doesn’t matter where you conduct your banking, but you might want to consider business bank accounts with digital services and applications, branches close to your physical location, and cheap or minimum account fees and charges. You should also begin acquiring company credit. If you’re a first-time entrepreneur, you’ll need to develop a company credit score in the same way that you’ve earned a personal credit score over time. Your company credit score influences future loan interest rates, payback conditions, and the amount of money you will get. While each lender has different requirements, you will generally be required to present your previous revenue, spending, invoices, and payroll when applying for a loan. Choose your insurance coverage Whether you are self-employed or have five workers, you must ensure that you have appropriate company insurance. The appropriate insurance protects you from unanticipated expenditures associated with running your business. From accidents to property damage to litigation, having the appropriate coverage means you won’t have to pay tens of thousands of dollars for damage caused by a broken pipe or slips and falls. Different types of coverage will be required depending on the type of business you run. The four most prevalent types of new small companies are as follows: General liability. This covers numerous workplace incidents, including property damage, bodily harm, and medical or legal expenses. General liability insurance is the most fundamental form of insurance that most businesses require. Professional liability. This insurance can cover accusations of professional mistakes, as opposed to unavoidable accidents. It’s important if you deal with expensive property (such as houses or cars), but professional liability insurance can also cover you if you have technical difficulties and can’t complete a job. Commercial auto. In the event of an accident or collision, commercial auto coverage compensates for damage caused by or to your company vehicle. If you use your car for commercial purposes, it is usually a legal necessity. Workers’ compensation. If an employee is injured on the job, this form of insurance will pay their medical bills and missed wages while shielding you, the employer, from liability. Workers’ compensation is required in several states for every firm with even one employee. TIP: Shop around for insurance. Not all providers are alike, so look for insurance tailored to your specific needs. We specialise in tailor made insurance, so if you think your business requirements are unique, contact us and we can get your policy to suit your business needs. [...]
October 14, 2021Business InsuranceContractors’ All Risks Insurance is a policy that protects you throughout any building tasks you may do. Such works may involve civil engineering alterations to your current home or business, such as the installation of extra rooms, floors, or lifts, as well as the construction of new buildings. Coverage is provided for damages to contract works as well as damage or injury for which you may become liable to third parties. The Contractors’ All Risks policy is a project-specific policy that is valid just for the length of the contract activity. There may also be cases where Contractors offer an Annual Contractors All Risks Policy covering a variety of contracts, generally capped at a certain amount for any one contract. Third parties, such as subcontractors, may be wounded while working on the building site. It not only covers those related risks, but it also combines these two types of risks into a single policy that fills the gap between limitations that would otherwise occur if separate policies were used. Buildings, water tanks, sewage treatment plans, flyovers, and airports are all popular projects for CAR insurance coverage. Understanding Contractors’ All Risks (CAR) Insurance CAR insurance plans are often taken out jointly by the contractor and the employer, with other parties like as finance firms having the option of being added to the policy. Since the insurance covers several parties, each retains the right to submit a claim against the insurer, however, all parties are responsible for alerting the insurer of any injuries and losses that may result in a claim. A CAR insurance policy’s objective is to ensure that all parties on a project are protected, irrespective of the sort of damage to the property or who caused the harm. Underwriters of this sort of insurance lose their right to subrogation, which means that if they pay out funds to one party in the agreement, they cannot attempt to recover those amounts from some other party in the contract. For instance, if the owner of a large building and the contractor working on the building are both covered by the same CAR insurance, the owner of the building can collect any losses caused by the contractor when a claim is submitted. The insurer, on the other hand, cannot seek reimbursement from the contractor. Flood, wind, earthquakes, water damage, and mould, as well as building flaws and negligence, are common risks covered by CAR insurance; they generally do not cover natural wear and tear, wilful negligence, or bad craftsmanship. Coverage for any damage to the contract works, including products such as tiles, stones, and fittings, both while they are being stored on-site and after they have been installed/used on the building. Coverage is provided on an All Risk basis, subject to the policy’s exclusions. The policy may provide coverage for property held by the insured on the contract site that will not be included in the works, such as during renovations. This is known as a ‘own surrounding property’ expansion, and a separate sum insured must be supplied, often by an architect, in order for such coverage to apply. In addition to the above, this part may cover costs for debris removal in the event of an accident on site, architects, and protection for the contractor’s tools and equipment if the latter is included as a joined insured under the policy. It is important to note, however, that expenses for correcting deficiencies that would have been incurred regardless – without the incidence of such loss or damage – such as architect fees to change plans due to Planning Authority orders or debris removal after demolition due to inadequate works – are not indemnified/covered. Special Considerations CAR coverage may be extended to cover the interests of manufacturers, suppliers, contractors, and subcontractors. The policy can also be expanded to cover the following events: Additional custom duty Air freight Damage to surrounding property Debris removal Earthquake Escalation Loss due to breakage of glass Maintenance visits Furthermore, CAR policies may be intended to cover losses incurred when a company’s start-up is delayed due to another covered loss. For example, if a property is destroyed and covered by CAR insurance, losses incurred as a consequence of a delay in opening the property while the damage is being repaired may be covered as well. CAR insurance can also be expanded to contain an escalation provision, cover terrorist activities, and cover excess third-party liability, among other less frequent circumstances. Contact to learn more about Contractors’ All Risks (CAR) Insurance and how it can help your business. [...]
September 26, 2021Business InsuranceWhether you are a sole trader or the owner of a small or medium-sized business that sells products to the public, such as a retail shop, cafe, restaurant, office, or hotel, it is critical that you have insurance coverage that protects you against ordinary or everyday hazards. By combining your business insurance policies into a ‘business pack,’ you can effectively cover many of the risks your company could encounter in a single policy. Your business pack insurance, often also known as a ‘Bizpack,’ can cover many of the most popular insurances required to run your business in a single adaptable package. By combining and insuring many risks, insurers could be able to provide lower rates and terms than if individual policies were purchased. What are the elements of business pack insurance policies? Public Liability Insurance Product Liability Insurance General Property Cover for Contents, Machinery, Plant and Stock Employers Liability Insurance Additional elements of business pack insurance policies: Glass: This covers breakage of internal and external glass and signs. Money: This covers theft of business contents or stock or theft of money. Marine & Cargo: Property in transit Legal Liability: This covers your legal liability to pay compensation for personal injury or property damage Business Interruption Coverage: This protects against damage to machinery caused by failure, as well as damage to boilers and pressure equipment caused by explosion and collapse. Refrigerated or frozen items can be protected against degradation as well. The disruption to trading that occurs as a result of a fire or other covered catastrophe can frequently have far-reaching financial consequences for your business than the actual damage. Business interruption insurance compensates you for any loss of gross profit caused by the disruption of your business following an insured loss. Electronic equipment: This covers fire, theft, accidental damage, breakdown and business interruption cover for computers and electronic equipment. General property: This cover is primarily designed for property (excluding stock) that is moved around, such as tools or professional equipment. Tax investigation: This covers costs incurred by your accountant or registered tax agent (after receiving notification from the Australian Tax Office) in conducting an audit or investigation in relation to your liability to pay tax. What is Covered Under Commercial Property Insurance? Theft coverage is generally available as part of a commercial property insurance “business bundle.” Insurance companies will often compensate for loss or damage to the building’s contents and corporate inventory caused by theft, attempted theft, armed hold-up, or vandalism. Many business property insurance plans will also cover glass or signage damage, which is common during vandalism or a break-in. The following are examples of events that may be covered by a business property insurance policy: Burglary Earthquake Explosion Fire Goods damaged in transit Lightning Storm, wind, and rain which can consist of snow, sleet or hail Vandalism Wind or water A basic insurance business pack covers your buildings and possessions if they are inadvertently destroyed by a specific event, such as fire, storm, impact damage, accidental damage, vandalism, or malicious damage. In most cases, a business pack will also contain public and product liability insurance. You may also add glass, money, maritime & cargo, and business interruption to your business pack according to your needs. We compare various major insurers to locate clients like you with the most cost-effective business insurance coverage you need and require. Our insurance brokerage service provides business pack insurance solutions for a wide range of businesses on a daily basis. Reliable and responsive business insurance when you need it When you operate your own business, we understand that time is money. When you get business insurance, you know you’re protected against some of your most significant risks. In difficult circumstances, you’ll have access to skilled claims teams and a carefully selected supplier network ready to assist you quickly – allowing you to continue functioning with minimum inconvenience. When looking for business insurance and weighing your alternatives, you’ll most likely begin with a small business insurance comparison. While investigating, keep in mind that the cheapest business insurance for small businesses does not necessarily provide the greatest coverage or service. Check with an expert broker to ensure that it covers all of the areas that your company need for peace of mind. Contact our insurance agents today to learn more about commercial insurance packages. Our qualified specialists will happily answer any complex queries you may have regarding business insurance packages. [...]
September 14, 2021Business InsuranceCommercial property insurance can assist your company in recovering from a calamitous incident. Disasters may strike with little or no notice, wreaking havoc on business structures. Within minutes, the commercial property you lease or have worked so hard to acquire might be badly destroyed by strong winds, electrical damage, storms, or fire. Construction prices are rising as a result of global material and labour shortages. The expense of rebuilding now may be substantially more than it was only a year ago. Furthermore, many commercial property owners have pricey and cutting-edge technology and supplies at danger. Following a major disaster, you may suffer a significant loss of revenue as you rebuild. While commercial property insurance might assist you in repairing your structure, other forms of company insurance can safeguard your revenue. These are discussed more below. Commercial property insurance is often known as business property insurance or commercial building insurance. An adequate policy protects company owners against damage or loss of critical business equipment, as well as harm to the commercial structure. This policy protects the company from severe loss as a result of a weather calamity, fire, or theft. Why buy a commercial property insurance policy? Commercial property insurance protects against loss or damage to buildings, property, and contents. When an unforeseen loss strikes, a commercial property insurance coverage can assist keep your firm viable. A commercial property coverage is one of the finest investments you can make in your business, dollar for dollar. Here are a few of the main reasons why company owners get commercial property insurance. Coverage for Your Commercial Building and Contents If a covered incident destroys your company’s property or contents, this insurance can assist pay for the repairs or replacement of these assets. Furthermore, if you are a tradesperson, material theft is a big danger as the cost of lumber and other materials rises. Peace of Mind You can rest easy knowing that your commercial building and equipment are safe from damage, accidents, or theft. You are well equipped to sustain even a big loss if tragedy strikes. Specific Coverage for Business Property A commercial property insurance policy provides coverage that a standard home insurance policy does not provide for sole proprietors who conduct their businesses from home. What Does Your Commercial Property Insurance Cover? While all insurance companies provide somewhat different coverage options, many providers can include the following. Loss or damage to the property at your place of your business Loss or damage to commercial building items, including fixtures, tenant upgrades, and fittings Damage caused by fallen trees, falling building pieces such as crumbling brickwork, or damage from surrounding construction Water damage caused by unforeseen leaks Accidental destruction of property such as a car crashing into your office building Machinery breakdown, offered as an add-on, providing coverage for industrial machinery and office equipment failure. While conventional commercial property insurance will cover fire and incidental damage to buildings, contents, and, if specified, stock. as well. However, it does not cover loss of revenue due to business disruption. To cover that, many business owners also get business interruption insurance to replace lost revenue following a covered loss. They can obtain protection through a customised business insurance package, sometimes known as a “biz pack.” This all-inclusive policy can include the following. Commercial property Stock Glass Signs Theft of money or certain other money losses Product liability Public liability It is essential to remember that water damage may or may not be covered by insurance. Always double-check your policies. How Much Commercial Property Insurance Do I Need? When determining how much coverage you need for your business location, keep in mind that insurers create this sort of insurance to return your firm to its pre-damage financial position. This entails being able to repair and replace buildings and contents at current rates, with no depreciation for wear and tear. This is referred to as replacement cost coverage. Typically, businesses with highly customised or specialised property would have higher replacement prices. Insurance coverage varies greatly from company to company. When acquiring a business coverage for the first time, keep in mind that all property policies have exclusions. Exclusions limit coverage and, if not completely understood, can result in unanticipated out-of-pocket expenditures. As a result, before making a final decision on your company’s new or renewed insurance coverage, it is best to get advice from an insurance broker. Contact our insurance brokers now to learn more about commercial property insurance. Our qualified specialists will happily answer any queries you may have and help you acquire the coverage you require. [...]
August 25, 2021Business InsuranceAlmost all businesses operating today can benefit from general liability insurance. General liability insurance protects your business from a variety of possible claims including bodily injury, property damage, copyright infringement, reputational harm, and advertising injury. It can cover the price of repairing the damage. This could include the cost of your legal fees or the cost of getting expert assistance on a particular issue. Let us take a closer look at each of these kinds of liability claims so you can understand how it can benefit your business. A typical claim is a bodily injury caused by your service. If someone is hurt at your business premises, a general liability policy will pay their medical expenses. A simple fall by a consumer at the firm store or business office could result in a bodily injury claim. Another frequent liability claim is for damage to property. If a person’s property is harmed while visiting your establishment, you may be held legally liable. Property damage claims would also cover damage to a client’s house or other property while you are at work for them. This coverage may also be applied to electronic data damage, it all depends on the policy specifications. Copyright infringement claims arise when you are charged with using someone else’s work without their consent in your business advertisements or other commercial marketing actions. You may suffer reputational damage if you say something negative about another business owner or company in a press interview. Advertising damage can occur when your firm criticises another individual, business owner, or organization. These types of liability issues are common; therefore, you should protect your business from any hefty charges. Funding for a claim on your own can be extremely expensive if you do not have general liability insurance. You would have to pay for a costly claim or lawsuit on your own if you do not have general liability insurance. What business liability insurance does not cover General liability insurance protects your company in many ways, but it does not insure everything. Different types of business insurance will be required for these types of liability claims. Vehicle damage: It does not cover business-related motor accidents, staff injuries, and illnesses, damage to your company’s property, errors in professional services, claims that surpass your policy limit, or criminal conduct committed deliberately by you or your workers. If you own the automobile and use it for business, you will need a commercial auto insurance policy in the event of an accident. Rental and non-owned auto coverage can protect you if you hire a car for business or use your private vehicle for your workplace tasks. Wrongdoings: General liability insurance will not cover any purposeful, illegal activities or wrongdoings committed by you or your workers. Staff injury: Workers’ compensation insurance is required for employee injuries and illnesses due to their work at the business. If you have at minimum one worker, it is recommended you have workers’ compensation insurance. Workers’ compensation can be obtained from either a private insurance firm or a government-run organization. Business property: Commercial property insurance covers damage to business property. This type of coverage covers leased or owned commercial offices or buildings, as well as business equipment. Service errors: Professional liability insurance protects against errors in business services and actions. If a customer or client sues you for an error in your professional services, this insurance will cover your legal fees. This type of insurance is often known as Professional Indemnity insurance. Claims are covered up to the liability limit of your insurance policy and no more. Purchasing an umbrella policy is an excellent strategy to expand your business liability insurance. This will safeguard you from any pricey lawsuits. Talk to a licensed broker General liability insurance is a simple investment with major implications. While general liability insurance premiums are quite inexpensive, this does not imply that you should spend more than is necessary for the finest coverage. With the assistance of a professional agent, you can ensure that you select the best insurance package for your company. Reach out to us today, and we can help you understand how general liability insurance can protect your business and what does it cover. We are friendly and work in your interest and represent you in the insurance industry. [...]
August 9, 2021Business InsuranceIf you run a business or are in charge of one, you may explore including insurance in your business strategy. Safeguarding your business from damage, interruption, and liability allows you to continue functioning even if something unexpected occurs that impacts your business. Without it, even a minor event might lead to the closure of your company. Traditional asset insurance protects your business’s equipment, stock, and assets from physical dangers such as fire, water, theft, or deliberate damage. Generally, most people are familiar with this sort of insurance because it is identical to the one you would get for your own home, car, and belongings. This insurance covers the expense of repairing or replacing your damaged or lost inventory or assets. In order for your business to be profitable and function, you must invest in property or commercial assets. Even if your company consists of one person working on a laptop or a huge corporation with a vast and diversified range of property and equipment, every business has assets that must be protected in the event of an unforeseen event. Business owners sometimes discover too late that the quantity of coverage they secured for their assets such as their buildings, machinery, and stock is insufficient. Flood, fire, earthquake, theft, and accidents may all cause significant harm to your business. Business Assets Insurance safeguards your company assets from unanticipated and unexpected physical loss or damage. You may also add coverage for liability or business interruption. None of us want to consider the possibility of suffering loss as a result of a criminal act or a natural disaster such as an earthquake or fire. Unfortunately, it does happen, so having the right insurance in place is essential. In addition to asset insurance, business interruption insurance allows your company to continue operating following an asset insurance claim. The coverage will compensate you for lost earnings and any additional labour costs for an agreed-upon time following the originally covered loss. Business assets insurance typically refers to the protection of your physical business assets such as those listed below with suitable business insurance: Stock and materials you use for your business Business equipment Business vehicles Covers your business assets for sudden and accidental damage Covers the expense of replacing your facilities’ locks and locking mechanisms if they are stolen or illegally copied. Why do I need asset protection insurance? Every business has assets. Depending on the nature of your company, these assets might represent a significant investment. Offices, factories, industrial equipment, technology, and cars may all be included. If you own a manufacturing or retail business, you may have valuable goods to safeguard. If anything happens to your facilities, products, or equipment, asset insurance may help you cover the expenses of repair or replacement and get your business activities back up and running as quickly as possible. Even service providers with no stock and little physical assets may have cash reserves, intellectual property, or technology that is critical to their functioning. What would happen if you lost access to your computers or communication system? What would it cost you in terms of restitution and your reputation? As a requirement of your financing, you may be forced to obtain asset insurance if you have a company or equipment loan. How much will my property insurance cost? The cost of your property insurance premiums may be determined by a variety of factors, including The kind and value of your assets. The quantity of coverage you wish to obtain The amount of excess you choose Your property’s location and security Whether your assets are concentrated in one place or dispersed over several Whether you want to cover assets that are stationary or in transit The kind and probability of the risks you wish to protect yourself against Business assets insurance broker Our experienced and friendly small business insurance brokers can assist you in locating appropriate and cost-effective protection for your company’s assets. The cost of insurance protection will vary depending on the type/s of business assets you wish to cover, the value of your company assets, where you are situated, your claims history, your industry, and the security measures you have in place. Tip: Get your insurance policy checked on a regular basis. Your risks and obligations can shift over time, so be sure you are on the most cost-effective coverage package. Pay special attention if you alter your business structure from a single proprietorship to a corporation. [...]
July 21, 2021Business InsuranceThis is perhaps the most often asked question by business owners. It is especially critical for tradies to know the answer to this since, based on who your insurance is with, there are elements public liability covers that you should be conscious of in times of emergency. In the event of an unforeseen catastrophe, public liability insurance protects your company. It covers public claims made in connection with your company’s day-to-day operations. It is essential for almost all organisations to have, and even more so if your business deals with clients and/or the general public. This involves working on your business premises, at a client’s location, or in or on a property owned by someone else. It can protect you from legal liability if your company causes damage to someone else’s property as a result of a negligent act. Legal and property repair fees can quickly grow and prove financially crushing if you do not have adequate coverage. Learn more about what public liability insurance covers and whether your business needs it. How Does Public Liability Insurance Work? Countless businesses come into contact with the general people and interacting with them is fraught with danger. Even if you post warning signs, a customer could slip and fall on a wet surface, and you could end yourself with a lawsuit on your hands. If someone sues your firm for a cause covered by your insurance policy, you file a claim with your insurance carrier. Your insurance provider contributes to the cost of your legal fees and pays damages up to the terms and terms of your coverage. A brief description of the “insuring clause” The policy’s coverage is fairly extensive. It protects you against unintentional damage or loss to someone else’s property. This includes the loss of use of non-physically property damage. It also protects you against personal injury responsibility (other than staff) that is not insured by Accident Compensation Corporation (ACC). It includes consequential harm or downstream losses, such as the loss of income to a business such as restaurants that had to shut down due to a power outage caused by someone cutting an underground wire. Or the damage to floors and walls caused by a leak when fixing or installing a skylight. Some policies additionally cover damage caused by poor workmanship, which is frequently excluded but is an important extra layer of protection for builders and tradies. The coverage will also pay the expenses of legal defence in connection with the claim. Typically, public liability claims are: Compensation for third-party injuries or even death In the event of property or goods that have been damaged Legal expenses while you are defending any of these claims Repair or replacement costs Ambulance call out as well as medical assistance and treatment Faulty or inadequate work For firms engaged in trade professions, personal injury or property damage resulting from free advice, services, or training. Legal expenses while you are defending any of these claims Who needs public liability insurance? Could you afford to pay the costs of a compensation claim if your company was sued and you did not have insurance? Do prospective customers expect you to have public liability insurance? Could you lose customers if you do not have insurance? The need for public liability insurance is determined by the location of your business and its specific requirements. It is a more limited policy than other types of business insurance, which implies it is less expensive but provides less coverage. It could be called the most basic insurance most businesses with employees should have. To simply put, if your company comes into touch with members of the public, if you have visitors to your facilities, or if you work on client sites, public liability insurance is a must. Although liability insurance is not required, most businesses should carry some form of liability insurance. Before accessing a construction site, it is common practise in the trades to have public liability insurance in hand. Depending on the nature of your business, you may require more than the minimum amount of protection, so it is prudent to review your policy with each new project or contract. If your business has the potential to cause damage, injury, or loss to other people or property, contact our professional team and we will help you understand the best liability coverage for your company’s growth. [...]
July 10, 2021Business InsuranceGeneral liability insurance is one of the most essential types of insurance coverages you need to safeguard your business, whether you are a consultant, operate your own retail store, or work as a contractor or skilled tradesperson. Lawsuits filed against your company can have a negative impact on your bottom line as well as your reputation with your clients or consumers. Understanding the risks that your company faces and having the appropriate coverage to defend you from those risks is a critical step in protecting your operations. What is liability? In the case of small businesses, liability refers to your company’s legal responsibility for third-party losses. You are exposed to a multitude of liability concerns the moment you decide to establish your own business. In some cases, your company may not have done anything illegal, but you may nevertheless find yourself embroiled in a lawsuit. Having the correct insurance coverage can help you reduce the losses you incur as a result of liability claims. So, what is general liability insurance? General liability insurance protects the policyholder against the risks of liabilities resulting from litigation and other similar claims. Liability insurance policies are often established by insurance firms to give protection against third-party insurance claims. As a result, they pay claim compensation to a third party damaged by the insured rather than the policyholder. When a third party is injured and files a claim, the insurance company has the legal authority to defend the policyholder. A general liability policy is frequently used by insurers to cover public and product liability concerns. These risks often include bodily harm or property loss caused by the policy holder’s direct or indirect acts. The maximum amount payable by the insurer in the event of a liability claim is specified in these policies. A general liability insurance policy, with the exception of automobile and professional liability, is a type of insurance policy that protects insured commercial enterprises from a wide range of liability risks. General liability insurance pays for various expenses, such as: Property damage or injuries caused by the company’s owners or workers Legal expenses, such as the cost of the company’s legal defence, settlements, and awards if the company is sued. Non-monetary losses sustained by the injured party, compensatory damage, and punitive damages are all examples of damages. Tenant liabilities, such as property damage if the company uses a rented property Expenses incurred as a result of accusations involving misleading or fraudulent advertising, including slander, libel, and copyright infringement General liability insurance pays for medical expenses incurred by a client or customer if they slip and fall while visiting your business. It protects a customer’s house or property from harm caused by one of your employees. Does my business need General Liability insurance? If you are found legally responsible for causing bodily harm or property damage to a third party, your firm may be required to pay the costs of the legal process as well as any financial losses incurred as a result of the litigation. Your reputation with your clients/customers could suffer greatly as a result. Consumers must have confidence in companies and brands they invest in. If handled improperly, a lawsuit could undermine that sense of trust. There are numerous instances in which you may be required to present proof of insurance. If your company attends events such as exhibitions or markets, the venue may frequently need attendees to present a certificate of liability coverage. Some customers will want confirmation of insurance if you are a contractor or skilled tradesperson before allowing you to work on their premises. Many small business owners are unaware that they require liability insurance or believe it is extremely costly. The truth is that no matter how tiny your business is, even if you run it from your home, it is still vulnerable to numerous types of liability. In reality, the consequences of a liability claim can be disastrous for a small organisation. Every firm, at the very least, should have a standard general liability policy in place to protect their business from risk and loss. What Types of Businesses Benefit from Commercial General Liability Insurance? The types of businesses that typically use general liability insurance include Small business owners, Landscaping companies, IT contractors, Real estate agents, Consultants, Marketing firms, Janitorial services, Artisan contractors. It is an essential form of cover for almost every type of business, from trades and services industries to white-collar professionals and office-based occupations. Who Should Buy General Liability Insurance? Here are situations where you would benefit from general liability insurance coverage: Your business is open to the public, clients, and vendors. You advertise or generate marketing materials for your company. You use social media for personal or professional reasons. You conduct business at third-party locations. In order to be considered for job contracts, you must have insurance coverage. You have temporary workers. We have over 25 years of experience in delivering the best possible insurance products to all kinds of businesses. Reach out to us and we can discuss what specific kind of insurance will your business best benefit from.   [...]
June 26, 2021Business InsuranceIt is important to emphasise that there is no “one size fits all” when it comes to insuring your business. Every industry is different and so are the risks related to your business. No policy covers everything, and every business requires a combination of business insurance for financial and legal protection against potential liability in a crisis. For example, a restaurant owner needs to consider about a customer becoming sick after a meal at the restaurant as well as a temporary shutdown in case of a disaster, while on the other hand, an accountant needs to consider being sued in case of a mistake occurred in a customer’s financial statements. The main role of insurance is when accidents happen, your business is protected. It is important to determine what type of insurance your business needs to minimise all the potential risks. Buying the best insurance policy depends on your unique needs. It requires a careful and thorough analysis of your business and its risks. Here are some steps to determine the type of insurance your business needs. Analyse your business assets and legal responsibilities. It all starts with a careful assessment of your business and its assets to determine what do you want to insure. We need to take into account your legal obligations and potential liabilities. For example, a machine shop owner may want to insure employees for injury, whereas a jeweler might want protection against theft. Common business assets include stock inventory, raw materials, cash (balance of your business bank accounts), equipment’s, etc. With legal responsibilities Accountants and Tax Agents require professional indemnity insurance to comply with professional association requirements (e.g., NZICA, CPA), professional standards legislation, or to meet the requirements of clients and/or tender processes. Analyse potential risks. Analysing your additional risk and liability will help you determine which insurance will offer the right type of protection. For example, if your business is situated on the bottom floor of an office building in a region prone to floods, you will likely want comprehensive flood insurance, whereas a business operating in a dangerous industry (construction, manufacturing goods, etc.) will likely want insurance to cover the risk of its employees getting injured. Whether you own a business where you are a sole trader, contractor, or run a large company with multiple employees, you need to guard against work and business risks. Typically, careful analyses of business operations and functions, including human resources and facilities which help determine where the risks are and what needs to be insured. Sorting out what your risks are involves answering two important questions of what could go wrong at work or with my business? and, have I got it covered? Common business risks include fire or natural disaster (e.g., floods, earthquake), theft (equipment, or stock), stock damage, loss in transit, IT crime or hacking, injury or property damage caused by your products or services, product recall, employment dispute, health and safety breach, etc. Decide how comprehensive you want your insurance to be. It all depends on what are you getting insured. You may need just a basic level of insurance or comprehensive insurance that covers all aspects of the potential loss. You will need to determine the factor of how costly the loss can be and assess the probability if it happens. This will minimize the risk of overpaying for coverage you do not need or skimping on coverage that is imperative for your protection. Getting the right advice. Insurance providers are not all the same. Policies, premiums, and coverage vary, research is required to find the best one to protect your business. It all requires professional help to set it up correctly and work out the right policy that will ensure your business stays afloat in times of unfortunate events. At Aim Associates we work towards analysing the unique risks involved with your business and help you get the right policy that will cover those risks. We are proactive and transparent and provide expert advice to find the right combination of coverage to keep your business legally compliant and financially protected. Key takeaway: To determine what business insurance you need, you will need to analyse your operations, assets, risks, and liabilities. Then, determine how comprehensive you want your policies to be. [...]
June 14, 2021Business InsuranceGetting your business insured with the right type of insurance can be a difficult nut to crack. Business insurance can cover a litany of things, depending on its terms and the type. The one question that arises with owning a business is that when mishaps occur ‘how do we keep our income stable?’, ‘What will cover the loss of gross profit and the extra costs of operations during the period of the event that pauses the business operations?’. This is where Business Interruption insurance comes into play. Before we dig deep into what is Business Interruption insurance, let us look into a few examples where an unexpected event causes loss in income. A power outage can lead to a temporary shutdown leading to loss of income. Businesses from small convenience stores, large supermarkets, petrol stations, etc., all need electricity to provide various services. Even a single day of a power outage can lead to stock/products in the refrigerators or heating cabinets spoiling, which affects the overall profit of the business. The loss of profit and revenue earned by the business due to theft can be a major hit. It affects the ability to pay the employees, stakeholders, and even operating expenses. This is a huge risk for small businesses like convenience stores, restaurants, and bars, currency exchange companies, car dealerships, dry cleaners, etc. Internet outage: Many IT-based firms run on internet to provide services, and an outage can result in the reduction of net income. Even takeaway outlets like small restaurants or large food chains can experience a major loss in income due to decreased online orders from the internet outage. Even a simple shutdown of ethos machines for many businesses can result in decreased product sales which in turn affects the profits. If a business owner owns a commercial premise and rents it out to various tenants, but after an event of a fire in the premises, the property can no longer be used for a period of time, the policy comes into action and recoups this loss of rental income. The complexity of businesses and the noticeable potential for losses as a result of disasters have led to the rise of Business Interruption Insurance. It is a way of ensuring the income of one’s business in case of loss due to a setback. As a business owner, whether of a large retail business or a small hospitality business, ensuring that your business is covered and continues to perform its financial obligations to the shareholders, staff, a bank, or other stakeholders is crucial when things go sideways. While Business Assets insurance covers the amount of physical losses such as machinery, land, vehicles, etc., it does not cover the potential revenue loss. Business Interruption covers a business in case of interruptions. Instead of covering a business for physical loss such as damage to the premises, equipment, or people, Business Interruption covers when the insured entity suffers through financial or income losses due to unforeseen events like natural disasters, fire, government interference, unexpected events, etc. The policy also covers operating expenses, such as electricity, or broadband that continues even though business activities have come to a temporary halt. This insurance is focused on the “period of interruption” and the “estimated profit loss”. The “period of interruption” is the extent of time following the occurred disaster in which the physical assets needed for the business operations are not producing income. The “estimated profit loss” is the value of loss in income which is estimated based on the business’s previous documented financial records during normal operating periods. It allows your business the funds to maintain your income while being closed, pay for additional expenses like advertisement costs to inform your customers of a new location due to the effects of the interruption, to organise and quantify your claim and meet the financial obligations to the bank, staff and shareholders. While Business Interruption insurance can help a business survive a calamity, there are limitations and exceptions to this type of coverage. It is important to fully understand the potential risks that your business might undergo by discussing with an experienced insurance broker. Every insurance policy has different terms and conditions that will determine the claim in case of an unfortunate event. At Aim Associates, we will help you sort out the right level of cover and advise as per your business’s unique requirements. We can help determine the important requirements that should be included in your policy and the ones that are not so important to keep your costs as minimal as possible and that you only pay for what is essential. We are experienced insurance providers with expert knowledge in all kinds of Business Insurance, if your business needs a cover, talk to us today and find out what type of insurance your business needs and what it means in the long run. [...]
May 30, 2021Business InsuranceAs a business owner, you know how important it is to protect your company with the right insurance coverage. However, the insurance industry is confusing and mysterious for many people. A business insurance, also called Commercial Insurance, is insurance that covers your business and everything it does. As there are many different types of businesses and industries, there are many different types of business insurance policies. As a small business owner, one of the things that should be included in your budget is the cost of your insurance premium. Although, this can be tough because, unlike many overheads, business insurance premiums are not a fixed or easily calculable cost. The cost of insurance can vary from business to business and is determined on an individual and specific business industry basis. There are no general pricing rules. One of the frequently asked questions is how an insurance company calculates a business’s insurance rates. There are many factors that can affect the cost of your commercial insurance. From the size of your business to your industry, the circumstances can differ greatly. To simplify, you can assume that the riskier your business is, the higher your insurance costs will be, though it can be minimized with help of an expert insurance broker. Most people know that insurance premiums are not stable and can rise and fall, but the question is why do your premiums change? What factors play a part in the amount of money you pay to your insurance company to increase or decrease? The scope of this article is to focus on what affects Commercial insurance premiums. Here we have outlined a few of the biggest cost culprits, but of course, speaking to an insurance broker will help you if you want to lower your insurance costs. Type of policy: The kind of business insurance policy you have affects your insurance costs. Different insurance policies have varying costs, the type of policy you purchase will affect your premiums. Most organizations need multiple types of insurance solutions. And the price for those insurance solutions can vary dramatically. Although, you can offset some of the costs of these policy premiums by bundling your insurance. Accumulating your coverage in a BOP (business owner’s policy) is a smart way to save some money while still getting the coverage you need.  For example, a standard Business Owner’s Policy (BOP) packs together the commercial property, general liability, as well as the business interruption insurance. This allows you to save money as it can be cheaper to pay for the BOP premium than paying for three individual premiums. Industry and risks: Certain occupations can be riskier than others. One of the major factors that affect your premium rate is the likelihood of it being paid out, as well as how high the liability would be in the case of a pay-out. With that in mind, some industries tend to carry more inherent risks than others and therefore have a more substantial premium. For example, a construction or a demolition company that is handling dangerous equipment or has a lot of potential hazards is expected to see a higher insurance cost and premium compared to an accounting company with less risks. So, if you own a construction or a petrol station business, the likeability of you paying more for insurance is higher because of its high-risk potentials. But this higher cost ensures that your business is covered in times of crisis. The amount of risks the insurer takes by delivering you an insurance policy will affect the coverage that is offered. In general, the higher the coverage provided by the insurers, the higher the premiums, but this does not always apply, so it pays to talk to an experienced broker about your coverage options. Number of claims filed/history: Insurance companies are big believers in the saying, “Where there’s smoke, there’s usually fire.” If the type of industry your business is included is notorious for high liability means that it has a higher risk of potential claims. All insurance companies will most likely look at your past claim history unless your business is new. For example, if you have had prior claims for machinery breakdown, an insurer may charge higher premiums for your machinery section than if there have been no previous breakdown claims. So, it is possible that your premium can be higher than others, but it allows you the peace of mind when problems arise. Shopping around for the right insurance is the best way to ensure you get the best price for all your business coverage needs. Our experienced insurance brokers know how to deal with insurance providers to find you the right policy and stay on track with the changes so that your premium remains at its lowest. [...]
May 14, 2021Insurance BrokerInsurance can be confusing and complicated, but it is important for any business out there. Almost too important to ignore. As business owners we like to think that we have got a water-tight strategy that covers all eventualities. But no matter how prepared you are, running a business is hard. Unplanned challenges and risks faced on a regular basis can make even the most confident of business owners second-guess their abilities. But it is not all doom and gloom, you just need an expert to help you navigate the right path to ensure your business thrives. This is where an insurance broker comes in handy. Insuring a business without an insurance broker can be complex as you have to navigate and choose between a sea of insurance options by yourself. While almost anyone can compare rates online, in most cases it makes sense to have a professional walk you through your options. An insurance broker acts as an intermediary between you and an insurer. They work towards analysing your background and are armed with their know-how to find a policy that best suits your needs for a reasonable price. ​Insurance brokers bring a lot of expertise and insights into insurance and offer a far more personal experience compared to dealing with an insurance company directly. To simply sum up, here are some of the advantages of having an insurance broker: Skilled insurance guidance: Insurance brokers are paid a commission by the insurance provider for selling their products. We do sometime charge  fee depending on the time and efforts put in. If you take our advice, our remuneration is paid by the insurance providers that we place the insurance policy with on your behalf, by way of commission. Specialist expertise: Our job is to sell insurance all day long and bring specialist expertise that offers solutions no matter what your needs are. We are professionals who know the ins and outs of not just the insurance industry and the products used, but also about different industries and businesses that require insurance to advise which policies will be most suitable. Awareness of many options: Our job process is to get you the ‘right’ insurance by covering you for your needs. We are experts at juggling all sorts of different insurance products so if your business has complex needs and priorities, we can make sure you find the best possible solution that covers all the risks. We can handle your insurance portfolio and will be able to let you know if any existing insurance covers you to avoid overlap (and overpaying). Flexible prices: Insurers do not usually drop their prices if you go to them directly. However, insurance brokers know how to work with insurers, and can negotiate on policy costs to help you secure the best price. Tailored policies for complex business needs: Most insurance companies will sell one-size-fits-all products, which might not be suitable for your business needs. But an insurance broker matches your situation with specific policies to ensure a ‘best fit’. Claims are looked after: One of the biggest benefits of using an insurance broker in the first place is easy claims. In times of making a claim, you are likely to be going through a lot of stress without even dealing with an insurance company. Your insurance broker will take the details and make a claim, and deal with any push back or issues. In essence, we fight in your corner and help you get the appropriate pay out. But if you have bought insurance directly, you will have to go back and forth with the insurance company yourself, which can be daunting and cause a lot of hassle and worry. Last year studies published proved that there were 40% more claims settled where the policies were handled by a broker than on direct basis. We act with your best interests and have a duty of care in how we behave – this allows us to be able to explain and justify any insurance policy recommendations we make for your business [...]
April 28, 2021Business InsuranceToday in New Zealand, over 97% of businesses in NZ are small businesses which employ 29% of our workforce and contribute over 25% of our GDP. With the growing competition of it has become harder for each business to thrive especially small enterprises in NZ. There are various challenges small businesses face and sometimes it can come with a hefty cost that goes out of your pocket. From little factors like customer dissatisfaction to fire damage to the property can be a sole cause of business shutdown. Tim Grafton, the CEO of the Insurance Council of New Zealand states that “Small businesses tend to run on leaner margins, so when something unexpected happens, there tends to be less capacity to absorb the cost.” This simply conveys that it is too risky to run a business without some type of protection in place. Your business is likely to be your main source of income that pays for other investments like your car and home. As a business owner, it can be extreme or even impossible for you to provide for or oversee all the upcoming risks. Insuring it through an experienced broker gives you a peace mind and focus more on your business. Your core strength is to expand quality od product or services and number of customers. Organising business insurance is just one of the costs that come with running a business. It can protect you in case of any losses covered under your insurance policy. It can also compensate your business when an inevitable incident occurs and helps to ensure your business’s overall functions. The key intake in this is that running a business comes with many risks, but one of the best ways to manage your risks is through securing a business insurance through people who know the subject. At Aim Associates, we evaluate your business risks and identify the level of cover you need and develop a tailored plan to protect your business from unforeseen situations that may arise. [...]