Compare Business Insurance

What is business insurance and why do you need it?

Business insurance helps protect New Zealand companies from the financial risks of disability, critical illness, or the death of the owner or a key person within the company. This type of insurance helps mitigate financial strain, providing cover and ensuring businesses can continue operating smoothly.

Benefits of business insurance

• Financial security: When a key individual is sidelined or lost, the business may suffer a significant drop in revenue. Insurance provides a lump sum or ongoing payments to replace lost income, cover operational costs, or offset profit declines, ensuring the business remains solvent.
• Business continuity: Losing a vital person can disrupt daily operations. Insurance funds can be used to hire temporary staff, train replacements, or maintain workflows, preventing the business from grinding to a halt.
• Debt protection: Many businesses carry loans or credit lines. If a key person’s absence jeopardises repayment, insurance payouts can settle these debts, protecting the company’s credit rating and assets.
• Peace of mind: Knowing there’s a plan in place alleviates the emotional and financial burden on owners, partners, and families, allowing focus on recovery or transition. 
• Support for succession: In the event of death, insurance can fund buyouts or transfers of ownership, ensuring a seamless handover and preserving the business’s value and vision.
• Employee retention: A stable business reassures staff, reducing turnover and maintaining morale during challenging times.

What happens if you don’t have business insurance in New Zealand?

For small businesses in New Zealand, the loss of an owner or key person due to long-term or permanent disability, critical illness like cancer, terminal illness, or death can trigger devastating consequences. As an insurance broker in New Zealand, we’ve seen how unprepared businesses can falter. Here are the potential risks:

• Revenue collapse: If the owner or key person drives sales or operations, their absence could slash income, leaving the business unable to sustain itself.
• Operational chaos: Without a critical individual, workflows may stall, deadlines slip and customer service falter, damaging reputation and client trust.
• Debt default: Loans or credit lines may become unmanageable without steady cash flow, risking bankruptcy or asset seizure.
• Staff redundancies: Financial strain might force layoffs and loss of valuable talent, further disrupting operations.
• Business closure: In extreme cases, the inability to recover or replace the key person could lead to a permanent shutdown.
• Family hardship: For family-run businesses, personal finances tied to the company could collapse, compounding emotional distress.
• Ownership disputes: Death without succession planning might spark legal battles over control, draining resources, and fracturing the business.

Types of business insurance

You can choose from a range of business insurance products depending on your needs and priorities. Some plans will pay out a lump sum benefit, while others can provide monthly benefits for a specific period. You can also bundle policies – and avail of multi-benefit discounts offered by some insurers – so you can get more comprehensive cover while saving on premium costs.

Covers that provide lump sum benefits

Having the right insurance cover can provide much needed financial support for business owners in case of unexpected events. The following types of business insurance offer lump sum payouts to help safeguard the business' financial stability.

• Debt protection cover: Helps cover outstanding business loans or financial obligations if the owner or key person suffers a long-term or total and permanent disability, is diagnosed with a terminal illness, or passes away. This prevents creditors from putting pressure on the business or its remaining owners.
• Ownership buyout cover: Funds a buy-sell business agreement if an employee who owns part of the company passes away, suffers from a long-term or total and permanent disability, or is diagnosed with a terminal illness. 
• Permanent loss of key person cover: Offers a lump sum to compensate for the financial impact of losing a key person or sole trader due to death, long-term or total and permanent disability, or diagnosis of a terminal illness. This can help with recruiting a replacement or maintaining business operations.
• Life cover: Pays out a lump sum to the policy owner or nominated beneficiaries if the insured passes away or has been diagnosed as terminally ill and given less than 12 months to live, helping with funeral costs, business expenses, and succession planning.
• Total and Permanent Disability (TPD) cover: Provides a lump sum if the insured person suffers a total and permanent disability due to an illness or injury, ensuring financial support for the business and personal obligations.
• Trauma cover: Pays a lump sum if the insured person is diagnosed with a covered serious medical condition, such as cancer, heart attack, stroke, blindness, loss of limbs, or dementia, or undergoes covered major surgeries such as coronary artery bypass surgery or major organ transplant, providing the insured with financial resources for medical costs as well as ongoing business expenses.

Covers that provide monthly benefits

For New Zealand business owners, insurance policies that provide monthly benefits can help maintain financial stability during periods of uncertainty. These covers ensure that essential expenses are met if the owner or a key person is unable to work due to illness, injury, or disability.

• Loss of revenue cover: Provides a monthly benefit when a key person or business owner is totally or partially disabled for a continuous period longer than the waiting period. 
• Business premium cover: Waives business insurance premiums if the insured key person becomes totally or partially disabled, ensuring that essential cover remains in place during difficult times.
• Business expenses cover: Pays a monthly benefit to help cover fixed business costs such as rent, utilities, and staff wages if the business owner is unable to work due to illness or injury.
• Business disability cover: Provides monthly payments to support the business if the owner or a key employee is unable to work for an extended period due to illness or injury, helping cover lost revenue or pay for a contractor to fulfill the responsibilities. 
• Key person cover: Offers a monthly benefit if a key employee is unable to work due to illness or injury, ensuring the business can afford a replacement or manage disruptions.
• Farmers disability cover: Specifically designed for farmers, this cover provides monthly payments if the insured is totally disabled due to illness or injury.

How to compare the best business insurance plans and get quotes?

Choosing the right business insurance is essential to safeguard your company’s future. Comparing insurance plans and quotes through an experienced broker like Policywise ensures you get the best cover tailored to your needs.

Benefits of using an insurance broker

• Access to multiple insurers: Rather than being limited to a single provider, brokers compare a wide range of policies to find the most suitable business cover.
• Tailored expert advice: Every business is unique, and a broker helps identify the right level of protection based on your specific risks.
• Cost-effective solutions: Brokers negotiate competitive premiums, ensuring you get the best value for money.
• Time-saving: Instead of researching policies yourself, a broker does the work for you, simplifying the process.
• Claims support: If you need to make a claim, a broker advocates, ensuring a smooth and fair outcome.

Policywise offers expert advice and personalised service to help New Zealand business owners find the right insurance solutions. Contact us today to compare business insurance plans and secure the best cover at the best price.

Why choose Policywise as your business insurance broker?

Choosing Policywise as your business insurance broker in New Zealand means you’re partnering with a trusted, expert team dedicated to your success. As a licenced financial advice provider, Policywise combines professionalism with a personal touch. 

Our independence sets us apart. We’re not tied to any single insurer, giving us the freedom to source the best policies from a wide market, tailored to your company’s specific needs.

Our advisers have a deep understanding of the New Zealand business landscape, offering customised solutions that balance cost and cover. We prioritise transparency, clearly explaining options (without jargon), so you can make informed decisions with confidence.

Our client-focused approach means we negotiate on your behalf, securing competitive quotes and ensuring you’re neither underinsured nor overpaying. For peace of mind and expert guidance, choose Policywise. Contact us today to safeguard your business.