Running your own business can be as challenging as it is rewarding.
It comes with its fair share of bumps in the road, so protecting yourself against potential mishaps - especially if you're a small-to-medium-sized enterprise (SME) - is vital.
The good news is that there are a variety of insurance options to cover most types of business and their specific areas of risk. So, what's out there?
Taking liability insurance first, the three most common types taken out by SMEs are: public, statutory and employers' liability.
Public liability
This is a critical form of business insurance, and for good reason: if any person not employed by you has their property damaged and the fault lies with your business, this will cover you for compensation claims, as well as repair costs and legal fees set out in the policy.
Statutory liability
If you accidentally breach New Zealand law, this type of insurance can cover the costs of certain fines or legal defence fees.
Employers' liability
If any of your employees are harmed or injured in connection with your business, your business may need to cover anything not covered by ACC.
Other options applicable to some SMEs include vehicle, asset and business interruption insurance. So how do I know what's right?
Think of the risks and worst-case scenarios that your business may encounter.
Before purchasing a policy, go over every detail to make sure that you're insured for everything that you would potentially need cover for. Ensure the excess is an amount you could afford.
Last but not least, it's important to know that even if you’re working from home - a common scenario these days - you may also need insurance for things like lost income or legal costs.
Disclaimer: These advertisements do not offer specific advice and you are responsible for your own decisions about financial planning, insurance and risk. All information presented is of a general nature, merely for informational purposes and is not intended as a substitute for professional and/or financial advice. Should you decide to act upon any of the information presented, you do so at your own risk.
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