What is Business Interruption Insurance? 

For business owners, one of the greatest risks is when business operations are affected by loss, damage or a disaster. A temporary cessation of business trading can affect you financially. If the business interruption is caused by insured events, which lead to loss, damage or destruction of property, you will be unable to trade and earn an income.  Business Interruption insurance is designed to protect you from financial loss caused by an insured event or incident that halts the business operations. Business interruption insurance helps return your business to the same financial position it was in prior to the event or incident. 

Why is Business Interruption Insurance Important?

Owning a business is a risky undertaking. Purchasing business interruption insurance can save you from the debilitating costs of recurring payables if your business has to temporarily stop producing goods or is unable to trade. It ensures that your business has a reliable financial stream of income when you have to pay expenses like rent, payroll, overhead costs, and contractual obligations with suppliers and vendors. Business interruption assists to place you back in the same position you were in prior to the event or incident. 

What does Business Interruption Insurance Cover?  

An interruption to your business can be caused by a number of insured risks or perils. Examples of this are when your business is affected by the devastating effects of flooding, earthquake, fire, burglary or theft and weather-related losses. 

Interruption to your business operations leads to lost income and profits. Business Interruption Insurance covers you for loss of profits or loss of rental income if you own a commercial building. It covers additional increased operating expenses that are incurred during a period of disruption, such as moving to new premises to continue trading. It also provides cover for professional expenses incurred, such as an accountant fee to prepare and present a claim evidencing loss of income to your insurance company. 

Make sure that you have a dependable insurance solutions provider that will help you in case of an unexpected business interruption. Schedule an appointment with us at Insurance Advisernet! 

Frequently Asked Questions 

What is included in business interruption insurance? 
Business interruption insurance can provide coverage against costs as a result of the disruption to business operations, like: 

• Loss of gross profit
• Loss or gross revenue  
• Loss of gross rental income 
• Wages / Payroll
• Additional increased costs incurred during a disruption
• Claims preparation costs 

Business Interruption policies can also extend to provide limited cover for other events, such as interruption or interference to the business resulting from the closure of transport routes or closure by an authorised body, preventing access to the premises. Or where your key supplier or customer suffers interruption or interference. 

What are the benefits of business interruption insurance? 
The primary benefit of business interruption insurance is to protect the business from financial loss caused by an insured event or incident that halts the business operation. Business interruption insurance helps return your business to the same financial position it was in prior to the event or incident. A business interruption policy provides temporary financial relief while the business is rehabilitating itself. 

What are the most common causes of business interruption? 
A business interruption claim can be triggered by a number of insured perils that cause disruption to business operations, including, but not limited to: 

• Natural disasters / Acts of God 
• Damage to property (e.g., fire or explosion)
• Burglary and vandalism
• Flood 
• and other weather-related losses

How is business interruption calculated?
A business interruption loss calculation is a formula based and best actioned by an accountant to establish the financial loss from a claimable event. It considers the financial impact and loss of revenue that would have been earned but for the loss occurring. This is determined from the financial records and previous trends of the business. 

What is Home Insurance? 

For most New Zealanders, the family home is one of our most prized possessions and the largest asset most people will ever own, so it’s worth protecting with the right insurance cover. 

Home insurance covers physical loss and/or damage to your house from events such as fire, lightning, explosion, destruction or damage caused by aerial devices, as well as weather-related loss such as storms, floods, cyclones, wind, hail and snow, and natural disaster events like earthquake and Tsunami. 

Why is Home Insurance Important?

There’s a multitude of reasons why buying home insurance is important. The primary reason is that home insurance provides financial protection if your house sustains loss and/or damage or destruction.  Insurance will cover the cost of repair or rebuild. Home insurance is often required by banks and lending institutions when taking out a mortgage. The insurance serves as security for the mortgage lender, protecting their financial interest in the property.  

What does Home Insurance Cover?

A comprehensive home insurance policy protects you against a number of insured risks, such as:

• Fire 
• Explosion
• Flood, storm, lightening and other weather events 
• Natural disasters such as Earthquake and Tsunami
• Theft, Burglary, and Vandalism

Some of the key things to consider when taking out Home Insurance include:

• What level of cover is being provided by the insurer? Are the sums insured adequate to cover a total loss?
• What is the occupancy of the premises?

At Insurance Advisernet, we can source the market and provide an affordable home insurance package that will protect your most cherished asset. Talk to an authorised representative today. 

Frequently Asked Questions

How much is home insurance in New Zealand?  

The cost of home insurance depends on multiple factors like type, size and age of the dwelling, construction, its features, location, occupancy and the extent of coverage required, and previous claims history. 

How do I know how much homeowner’s insurance I need?

When taking out a home insurance policy, you need to know the details of the home to ensure you have the right replacement value sum insured to rebuild your home in the event of loss, damage, or total destruction. There are several ways a replacement value sum insured can be calculated for your home. This can be provided by either a valuation from a registered valuer or by an estimate using specific industry calculators. It is important to have the right sum insured calculated to ensure you have adequate cover to rebuild or repair your home to the size and quality it was. The sum insured should factor in other costs such as materials, demolition, labour consents and fees that are required with rebuilding.