What is Business Interruption Insurance in NZ? How Can It Benefit You?

Author: Business Insurance

Theoretically, the concept of business interruption insurance is simple. It covers your loss of gross profit, in other words, the drop in annual turnover and the inflated cost of working, throughout the period of business interruption.

This is different from material damage insurance as that covers all physical damages to your business property, plant or stock. Business interruption insurance, on the other hand, offers a cover for the decline in business revenue owing to some damage to the business property caused by an insured event such as fire, volcanic eruption, earthquake, etc. or increase in costs due to relocation business interruption insurance in NZ is not offered as a separate cover but is auxiliary to material damage insurance. You can only raise a claim if the cause of the loss is well covered under the material damage insurance policy.

Significant Benefits You Get With Business Interruption Insurance

  • Shutting of all transport courses, ports or airports

    • If your business is interrupted by any of the insured damages resulting in closure, or a closure occurs because of fear of any insured damage at any transportation course, port or airport in New Zealand, you can claim full cover.

  • Supplier / Customer Properties

    • You can claim a cover if your business is interrupted because of any insured damage to any property in New Zealand that provides goods to you.

  • Prevention of Access Cover

    • You can claim a cover in case access is prevented or delayed to your property due to an insured damage taking place within 1kilometer radius of your property.

  • Private and public utilities cover

    • You can claim a cover for any loss occurred from insured damage to private or public electric, water or gas utilities( except offshore pipelines).

    Therefore, it is extremely important to get your business covered underbusiness interruption insurance in NZ. You can easily browse online to find a list of reputed insurance brokers in Auckland. You can validate the authenticity of the broker by making sure that he is licensed in the state. It is significant to clearly know what your policy does and does not cover. You can also ask your insurance agent for a comprehensive explanation in meek language. Ask straightforward questions in case of any doubts.