Business Insurance (Material Damage & Business Interruption) provides protection for any damage to your assets and the resultant effect on your business performance or earnings. It’s designed to help you manage things while you’re carrying out repairs, cover expenses, and get you back to business as soon as possible.
- Lost income or profit resulting from damage or closure and lost customers
- Increased expenses or operating costs
- Meeting financial obligations to the bank, shareholders, staff
- Repair or replacement of any damaged assets
- Expert advice and claim preparation.
Commercial Risk Specialist, Lisa McLeod, answers your questions
Q. Who needs this type of insurance?
Lisa says: If your business relies on any physical assets, including your premises, to generate business income, then you should have Business Insurance cover.
Q. Without it, what could happen?
Lisa says: Most businesses rely on assets like tools, equipment, stock and their premises to keep running. If these were damaged or destroyed would you have sufficient funds to replace those things and get back to business quickly? Would your turnover drop while you were sorting everything out? Perhaps your expenses would increase for a while too. Many businesses fail after a significant loss like a fire or burglary. Not because of the actual damage, but the time it takes to get the business back to normal and regain lost customers.
Q. How much cover do I need?
Lisa says: The sums insured for your building, plant, machinery and contents should be enough to cover replacement of everything. Stock should be insured for the maximum value you hold at any one time. The type and level of business interruption cover depends on how your business would be affected by damage to the assets you own or use – we can talk with you and work out what’s right for your business.
Q. What affects the premium I’ll pay?
Lisa says: The main factors for this kind of insurance are the location, age, construction and occupation of the premises, what security and fire protection you have, and if you’ve had any past claims.
Think you might need Business Insurance
(Material Damage & Business Interruption)?
From our clients
“Lisa, from Meridian General, takes unusual requests in her stride. An undisputed expert in her field, she is super responsive and makes the process of managing our insurances absolutely seamless. Like the time she arranged cover for an export order we airfreighted to Korea. Lisa very professionally managed the interface with the bankers on our behalf and resolved what could have resulted in costly delays due to misinterpretations. Engaging Meridian General as your broker is one of the best decisions you will make.”Elaine Clark, Otari Group Limited