Fleur-Revell posted on May 22, 2011 00:10
Media release; Demand for Business Protection High After Christchurch Quake – companies nationwide have taken heed of the potential disruption costs of a natural disaster.
Auckland based insurance brokers are reporting a surge in sales with worried company owners requesting business interruption insurance in the wake of the Christchurch earthquake.
Mark Hayes, director of McCarrison Hayes Insurance Brokers, says since the February earthquake the company has noticed a sizeable increase in the number of businesses inquiring about business interruption insurance.
Business interruption insurance is a policy that works hand in hand with property policies and helps a business to survive a major loss when it has to stop trading for a period of time.
Hayes says his firm has sold more business interruption policy insurance in two months than it had for the previous 12 months.
He says while the Christchurch earthquake has highlighted the need for all businesses to have such a policy, it has also cast a spotlight on how many businesses don’t currently have it.
“Kiwis have a ‘she’ll be right’ attitude and don’t think that it will happen to them. Some people also receive poor advice from their accountants who advise them to cancel it or not take it out, without realising the consequences,” says Hayes.
“Company owners without business interruption insurance just do not understand how exposed they truly are when faced with an emergency.”
Such instances aren’t just limited to natural disasters. It could be anything from a fire on site to prevention of access to the business by Government agencies or failure of utilities such as power and water, says Hayes.
The policies, he says, can be tailored to any company’s needs and can cover anything from gross profit and wages to renting a new location and claims preparation like accountant’s fees and claims experts.
Hayes says brokers tend to have vast experience with the covers in question and can point out potential exposures that you might not perceive as well as offering correct solutions for individual needs.
“It’s always important to remember that paying a little more for the correct cover may save you a great deal of money in a claim situation.”