WHAT IS BUSINESS

INTERRUPTION INSURANCE IN

NZ? HOW CAN IT BENEFIT

YOU?

I N S U R E O N L I N E

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

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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.

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S I G N I F I C A N T B E N E F I T S Y O U G E T

W I T H B U S I N E S S I N T E R R U P T I O N

I N S U R A N C E

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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.

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Supplier / Customer Properties

Prevention of Access Cover

Private and public utilities cover

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.

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.

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 under

business 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.

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