Whether you’re a sole trader, contractor or running a small business, falling victim to an uninsured event can be a huge financial burden for your business and livelihood. There’s a range of business insurance options out there for SME operators and often, the difficulty lies in finding the right options for you*.
The SME insurance specialists at BizCover have compiled some key questions to consider in seeking to ensure you’re protected from the financial pressure of a claim or unexpected event.
Do you need insurance?
Insurance is a mandatory requirement for some professions in New Zealand and you can find out the types of insurance that might be required for your profession by doing a little online research. If you’re a member of a professional association in your sector, they can often give you advice on the types of cover you should get. Are you renting a premises? Check with your landlord on the level of Public Liability cover that’s required. Also, working as a contractor opens you up to a range of risks. Companies that engage you may require a minimum level of insurance before you can get started.Do you have a contingency plan for the unexpected?
Could you sustain your livelihood in the event of a major disruption to your business? This could be anything from damage to your premises, loss of stock, theft of tools or being the subject of a lawsuit. All of the above can represent a huge burden on your bottom line and your personal life.An allegation of wrongdoing in the provision of professional services, even if it’s unintentional, can put you at risk of a costly legal defence and threaten your personal assets. Unless you have a large lump sum of cash available to defend yourself, the cost of withstanding it can be devastating. Holding Professional Indemnity cover* is a good contingency measure to have in the event you have to respond to a claim or lawsuit. This type of insurance can cover you for damages awarded, defence costs and even investigation costs.
Are you neglecting the cyber threat?
SME operators often neglect adequate cyber protection in the belief their business is too small to be a target for cyber criminals. Unfortunately, cybercrime is now an ever-present threat regardless of the size of the company. In November 2019 Scoop.co.nz reported** that more than one third of NZ businesses had been hacked in the previous year. Equally alarming was that one in three hadn’t undertaken any assessment on the potential impact of a cyber-attack.SMEs are often targeted due to their potentially minimal security measures and can be an easy target for accessing personal data, IP or bank account information. Cyber liability insurance* can form an integral part of an SME risk management plan to protect your business, your reputation and your customers against online criminals.
Need some help getting insured?
There’s plenty to consider in protecting your business and if you’re still unsure, the team at BizCover can help. You can switch and save with their terrific rates and as an n3 Member, you can receive 10% off the base premium of every policy you purchase.Head to our exclusive n3 and BizCover page here, enter code n3biz to apply your exclusive discount at the checkout for redemption.
*As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained in this article is general only and should not be relied upon as advice.
** https://www.scoop.co.nz/stories/BU1911/S00500/the-cyber-security-war-how-nz-businesses-are-affected.htm
