AT RISK SMES URGED TO INCLUDE STATUTORY LIABILITY INSURANCE IN THEIR RECESSION RECOVERY PLANS

Kiwi businesses recovering from the recession could be putting themselves at risk by overlooking statutory liability insurance, according to TOWER Insurance, one of the country’s oldest providers, and not-for-profit mentoring organisation, Business Mentors New Zealand.

They are encouraging SME business owners to include a re-examination of their business insurance in their recession recovery plan, to assess any risks and to check that they are sufficiently protected.

According to Julian Lough, National Manager - Commercial Sales at TOWER Insurance, it is vital that companies are aware of the possible consequences of operating without statutory liability insurance.

‘Many small to medium companies may not be able to keep going if they were hit with a large, one-off cost. If they had to pay legal fees or fines associated with unintentional breaches of many Acts of Parliament, it might just finish them off,’ explains Julian. ‘Statutory liability insurance can cover you should you unintentionally breach acts such as the Resource Management Act, the Health and Safety in Employment Act (legal fees only) or the Fair Trading Act.’

‘Every business is susceptible to the risk of unintentionally breaching Acts of Parliament. However, some will be more vulnerable than others so make sure you carry out a full and detailed risk assessment,’ adds Julian. ‘Your insurance plan should be tailored to your own individual needs and requirements. It is well worth contacting an experienced insurance representative who will be able to help you decide what level of coverage your particular business needs.’

Business Mentors provides access to 1,600 volunteer mentors (who provide their experience, skill and knowledge free of charge). The focus of the organisation is on developing capability, profitability, and employment generation. Since the organisation was established in 1991, Business Mentors has assisted over 50,000 small to medium businesses. It is funded largely by patrons from the private sector, with additional support from New Zealand Trade and Enterprise. It provides a mentoring service to businesses that have been operating for at least six months and provide the owner's main source of income.