MANAGING YOUR RISK
Being the boss might give you greater freedom and earning potential but it also means you have more responsibilities and need to plan for all eventualities.
Most New Zealand businesses appreciate the need to manage the risks they face every day. If you’re in business, chances are you insure your premises, vehicles, equipment and stock against fire, flood and theft. But have you stopped to think what would happen if you were to lose one or more of your most valuable assets – the people who make your business work’ including you?
Protecting against the loss of business partners, shareholders and key staff is an important function of any business insurance policy.
Taking unexpected time out.
Are you aware of the income protection and rehabilitation options provided by your ACC cover?
If you or your staff are injured in an accident and this impacts your ability to work, up to 80% of your income is protected by ACC. ACC has a specific package designed for the self-employed and shareholder-employees.
Have you chosen to have the maximum amount of income protected through ACC? Are you aware there are options to restructure your protection with a balance of ACC and private income protection which could offer you greater value for money and more comprehensive protection?
Talk to us about how we can help you optimise your business insurance, so that you have the confidence you’re covered appropriately for your unique circumstances.
If something happened to a key person, what would happen to your business?
When you’ve worked closely with someone for many years building a business, it’s easy to take for granted the essential and valuable part they play and to assume they’ll always be there. However, sometimes the unthinkable can happen without warning.
Appropriate protection guards your business against the loss of a key person and the revenue they generate. Most businesses rely on key people, without whom the business would struggle or even have to close.
Losing a shareholder or business partner.
The loss of a shareholding director or business partner can have a dramatic impact on a business. Would your business survive if one of the owners were to die prematurely, suffer a critical illness or become permanently disabled?
Who would take their place not only in performing their day-to-day role, but also in deciding how your business is run?
Appropriate shareholder protection, coupled with a suitable agreement such as a buy-sell agreement, ensures your business can continue should one of your business partners become seriously ill, injured or even die.
Have you considered your ability to pay back debt if something happened to a shareholder?
If you, your business partner or a key person were to become ill, be injured or die, could your business continue? What would become of the assets associated with any loans taken out to support the business?
Appropriate business debt protection helps guard your business assets should you be unable to service a loan. Often the ability to borrow is dependent on the income generated by a key person. If that person were to die or become seriously ill or injured, insurance could help you meet your repayments.
OTHER INSURANCE TO CONSIDER
What will it really cost to replace your building in the event of loss from a fire or tornado?
Business interruption coverage
You need to consider how long it would take to restore your business operations in the event of a fire.
Commercial motor vehicle insurance
If your business vehicle is damaged, will you be able to continue your work?
You may decide to offer group health insurance to employees.
Depending on your type of business, you may need to take out general, public, professional or employee liability insurance.
Property insurance may be one of the most important types of insurance in terms of financially protecting the property and physical assets of your business.