If you’re starting a business or running a small business, you’re probably well aware that you need to manage your expenditure wisely. It’s important to be careful about what you spend your scarce capital on. You’ll want to make sure you’re getting the best return on your investment for everything you buy. But many businesses get into trouble by cutting corners on things that are really very important. Small business insurance should not be one of those things to skimp on.
What Does Small Business Insurance Do?
Legal cases and claims are more prevalent than ever, and some customers will sue for almost anything. As a business owner, this exposes you to the high cost of defending yourself, followed by a price to pay for a settlement or judgment.
Business insurance can pay these costs, whether you have made a mistake or not. By having the right business insurance coverage, you protect your business from potential ruin if you are challenged or a claim made against your business. For a small outlay on business insurance, you can protect your business and your scarce capital for everyday expenses and for growing your business.
There are three kinds of business insurance that all small business owners need to consider. Material damage cover, business interruption insurance and liability protection.
Material damage insures your fitout, stock, equipment and obligations you have to a commercial property landlord. It covers events such as fire, storm, theft and break and enter. Business interruption insurance pays claims that arise under material damage cover and its purpose is to pay additional costs that may be incurred if you have to set up temporary premises and if your profit has been reduced as a result of a claims event.
Public liability insurance pays for claims when someone else was injured or their property was damaged and your business and your employees are at fault. There is also statutory liability and employers' liability to protect your business in the event that it has breached laws or caused illness to employees.
So How Much Does Business Insurance and Public Liability Cover Cost?
At Insure Online, we are relentless about reducing the cost of insurance for New Zealand’s small businesses and making it cheap for everyone. After all, we are a small business too. We appreciate the importance of preserving capital for running expenses while also recognising that risks can lead to expensive claims against our business that we could not afford to cover ourselves. We do it online and we pass on the benefits of buying online insurance to your small business across New Zealand in the form of lower business insurance premiums.
Material damage insurance can be purchased for around $500 (plus fire and emergency levy) for a year and business interruption cover can be obtained for between $150 and $200.
A public liability policy for a small business for a year can be purchased from as low as $225 a year. This equates to only $18.75 per month. Add statutory and employers’ liability cover and you can still get adequate lability insurance for as low as $400 for a year, equating to $33 per month, or less than the price of a cup of coffee per day.
Where Can I Buy Small Business Insurance?
Business insurance can seem like an unnecessary and avoidable expense when you’re starting out, but it’s easy to see how valuable it can be if you’re faced with an unexpected lawsuit or damage caused by a fire.
Let us help inform you and help with your decision about New Zealand business insurance needs. Our website specialises in helping small businesses obtain the best business isnurance coverage at the best price at insureonline.co.nz.