Commercial property and assets insurance is one of the most important types of insurance an organisation can ever consider. This type of insurance protects your business’s premises and assets in case of a disaster. For example, if there is a fire and your shopfront is destroyed, this type of insurance can help pay for repairs or relocation. Or, if your work tools are stolen from your vehicle, again, this is the insurance you’d rely on to recover the cost of those tools.
Without this type of insurance, your business would be left exposed to significant losses. Therefore, commercial property and assets insurance provides exceptional peace of mind for business owners.
Even if you already have commercial property and assets insurance cover in place, it’s important to make sure you review your cover periodically. After all, your business is likely to change from year to year as you grow or add new services, update your equipment, or move premises. And the risks you face could be different, too especially in the current changing environment.
If you’re not already reviewing your commercial property and assets insurance at least annually, it’s highly recommended that you do so. And, you should always review your policy with your insurance broker when something substantial changes in your business. For example, if you update your company vehicles, install new equipment, get new signage, move premises, or any other changes. While your policy may not need to change, it’s better to be sure that it covers you for the real losses you could incur if you suffer an insurable event.
Am I covered for losses incurred due to COVID-19?
COVID-19 has been incredibly disruptive and has left many businesses feeling uncertain about how they will continue operating. For many, it has also raised questions about security, both of their financial future and physical operations.
After more than a month in lockdown, you may have already answered some questions about your business continuity. Now with current easing restrictions, you may also be feeling more confident about returning to business as usual.
However, this coronavirus is relatively unpredictable, so it is possible that we may see restrictions fluctuating in the future. In this changing landscape, certainty is rare, and knowing where you stand regarding your financial security is important.
Part of this will mean understanding if you’re still covered by insurance. You may have read or heard people saying that insurance doesn’t cover pandemics. While that’s strictly true, the coronavirus pandemic doesn’t automatically void all of your insurance and it’s important to know that whatever insurance policies you had before the virus hit will likely remain valid.
What you are covered for
Having a good risk management strategy in place often requires having a good insurance policy backing you up. Regardless of your business operations, it’s critical that you consider protection for your property and assets to safeguard your livelihood in case of emergencies.
Not protecting your business can be a costly affair, both in terms of your financial security and your company reputation. If you can’t plan for the future of your own organisation, your customers may assume you can’t plan for their future either.
In the first instance, it’s important to review your existing insurance policies to understand what you are covered for and what clauses may be impacted by a pandemic. Commercial property and asset insurance policies can cover a broad range of events, and the specifics of your policy will provide more clarity over what is and isn’t covered by policy limits.
As of January 2020, coronavirus is a listed disease by the New Zealand government. Essentially, this means that disruption as a direct result of coronavirus is unlikely to be covered by any policy. But that doesn’t necessarily mean that you aren’t covered for all other insured events.
Proactively reviewing your insurance policies with your broker will help you in the long run, especially if you experience an insurable event such as theft, vandalism, or fire. By working closely with your insurance broker, you will be better prepared for the best chance of success when presenting a claim.
Planning for the future
While the constantly changing landscape we are in presents many challenges, it also gives us a great opportunity to step back and conduct a strategic business review. This includes assessing your insurance policies to make sure you’re adequately covered under the current circumstances and into the future. Reviewing your existing commercial property and assets insurance coverage will help you see a clearer picture of where you stand insurance-wise for the global pandemic. Especially if your business operations have changed due to the lockdown, it’s important to make sure your insurance still reflects your business needs.
Though we don’t know what the future holds, now is a good time to consider the risks facing your business and how you plan to address them, both with insurance and other risk-mitigation efforts. It’s worth reaching out to your broker to review your current and any new policies to ensure you are covered appropriately for your risk profile for future events.
Contact NZbrokers today to find an experienced insurance broker in your area.