WHY TRIMMING BUSINESS INSURANCE CAN BE DEVASTATING

TREND TO TRIM BUSINESS INSURANCE COULD HAVE DEVASTATING CONSEQUENCES SAYS BUSINESS MENTORS PATRON, TOWER INSURANCE

According to TOWER Insurance, one of the country’s oldest and most trusted providers, and Patron of Business Mentors New Zealand, some companies are trimming the scope of their insurance cover in a bid to cut costs. However, TOWER warns this false economy could leave businesses open to huge bills and in many cases force their closure. TOWER is asking business mentors to help guide their clients away from underinsuring.

‘As 2011 gets underway, it is becoming clear some business owners think they can get away with spending much less on insuring their companies. They are being more selective, only taking out small chunks of insurance and not protecting their businesses to the full extent. They don’t think it’s necessary and they don’t want to spend the money. We’re asking BMNZ’s 1700 mentors to be on the look out for client companies that might be falling into this trap and counsel them against it,’ says Julian Lough, National Manager - Commercial Sales at TOWER Insurance.

‘This year is going to be financially challenging for many businesses but now is not the time to be cutting back on insurance. If another natural disaster or other unforeseen situation occurs, then being underinsured or not having the right type of insurance could be the final straw for many companies that are already struggling.’

Julian points out that most New Zealand business owners only realise their mistake when they make an insurance claim, at which point it is too late to rectify. He advises catching up with an insurance advisor at least once a year to check that the business is adequately covered.

‘Businesses change over time - new equipment is invested in, replacement costs for items go up and premises are upgraded,’ says Julian. ‘If the insurance policy is not kept up to date, the company could end up being horrendously underinsured and financially unable to get the business up and running again should something awful happen’.

‘Contrary to popular belief, fully insuring a business does not have to cost the earth. As an example, for the cost of a cup of coffee a day (which equates to about $1,300 per year), a company could be covered against a number of eventualities, giving the business owner sense of security and enabling them to keep their doors open. It is so important that New Zealand businesses look ahead and consider the long term implications of cutting insurance corners. We have lost enough companies over the past few years, with the economic downturn taking its toll. Let’s not lose anymore when the cost of that cup of coffee could be enough to prevent it.’

For more information on Business Mentors New Zealand, visit www.businessmentors.org.nz

SMES TAKING INSURANCE COVER MORE SERIOUSLY SINCE CANTERBURY EARTHQUAKE SAYS BUSINESS MENTORS PATRON TOWER INSURANCE

SMEs are taking business insurance cover more seriously since the Canterbury earthquake according to Business Mentors patron, TOWER Insurance, one of the country’s oldest providers. However, despite the increase in queries, TOWER claims that there are still too many companies that are inadequately insured and could be at risk if another disaster hit.

The statistics are not encouraging. At the Business Mentors AGM this month, TOWER announced that around one in five small businesses may have no cover at all and a third of those that do insure their assets are severely underinsured. On top of that, two thirds of businesses that insure their assets do not insure against business interruption, and would not survive a major setback.

According to Julian Lough, National Manager - Commercial Sales at TOWER Insurance, attitudes towards business insurance are changing but not quickly enough.

‘Even though things are changing in New Zealand and more business owners are realising the importance of having their company properly protected, there are many that are seriously underinsured,’ says Julian. ‘This is often down to a reluctance to pay premiums and valuation costs or they might be receiving insufficient advice from their insurance advisers. There is also a certain amount of apathy amongst some individuals. It’s the whole ‘it will never happen to me’ mentality.’

‘Underinsurance is definitely a false economy,’ adds Julian. ‘If insurance cover is less than the value of a business’s assets, and that organisation is hit with an unexpected event, they will find it very difficult to recover.

Julian advises business owners to make sure they are adequately insured by correctly assessing company assets and keeping the insurance company updated with any changes. They should also bear in mind that the cost of a business grinding to a halt can far exceed the cost of replacing the furniture and computers.

‘It is important to remember that it is not just physical items that business owners need to think about protecting,’ explains Julian. ‘A company suffering a substantial setback, such as a fire, flood or earthquake, can take many months to get going again. Profits will be affected and the employer might find it difficult to continue paying for staff and supplies. They may even need to rent alternative premises if the usual ones have been damaged in some way. Taking out the right business insurance policy will mean that these things are taken care of, should the unthinkable happen, allowing the company to continue functioning and supporting the people involved in it.’
For more information, visit www.tower.co.nz.

TOWER LENDS FUNDS TO HELP KIWI MEN LIVE LONGER, HEALTHIER LIVES

Taking the message that men need to be more aware of the importance of looking after their health, directly to the workplace, has just received a major shot in the arm thanks to TOWER Limited, one of New Zealand’s leading investment and insurance companies.

Men’s Health Trust New Zealand has signed a three year corporate sponsorship with TOWER, which will help fund the Trust’s workplace programme.

Men in New Zealand live on average, four years less than women, and death rates for Maori men are double that of non-Maori.

Nearly a quarter of men smoke, over 50 percent are overweight, 27 percent indulge in potentially hazardous drinking, and two die each day of preventable illnesses.

It’s these unacceptably negative statistics that the Men’s Health Trust New Zealand is committed to improving by talking directly to men in their workplaces.

"New Zealand men go to see a doctor three times less often than women, and men in general lack awareness of the importance of health screening to help detect preventable diseases and deaths, from conditions such as diabetes, cancer and heart disease,” says Dr Graeme Washer, Trustee and medical consultant to the Trust.

Men are also over represented in the areas of high cholesterol and suicide. The suicide rate for Maori males is 30 percent higher than the rest of the population.

The chairman of Men’s Health Trust New Zealand, Colleen Thurston, says the corporate sponsorship with TOWER is critically important to the success of the Trust’s workplace initiatives.

“This is a wonderful and very significant step forward as it helps the Trust take its workplace awareness program to more companies, which is a major goal for us,” Colleen Thurston says.

Rob Flannagan, TOWER’s Managing Director, says “this sponsorship sees TOWER enhance its social responsibility within an important segment of our society. It is very well aligned to the company’s workplace markets in which we offer life and health insurance as well as Kiwisaver to employees of over 700 companies, many of which have predominantly male workforces.
TOWER’s association with these companies makes us an ideal partner to assist the Trust raise the awareness of men’s health within the workplace,“ Mr Flannagan says.

The Men’s Health Trust New Zealand was formed three years ago to address these serious men’s health problems, and to actively encourage New Zealand men to take more personal responsibility for their own physical and mental well being.

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.

BUSINESS MENTORS NZ AND TOWER INSURANCE WARN WINTER COULD SPELL TROUBLE FOR UNDERINSURED KIWI BUSINESSES

Entering winter without adequate insurance could be putting Kiwi businesses at risk, warns TOWER Insurance, one of the country’s oldest providers, and not-for-profit mentoring organisation, Business Mentors New Zealand.

According to Julian Lough, National Manager - Commercial Sales at TOWER Insurance, a Business Mentor’s Patron, winter can present businesses with a wide range of seasonal problems. New Zealand companies that are underinsured or don’t have the right insurance could find themselves caught out and footing a substantial bill.

‘In most industries, winter can present a business with a unique set of issues,’ explains Julian. ‘Nationwide storms are a common problem throughout the wetter months, potentially causing millions of dollars of damage to buildings, stock and equipment. The effects of wild weather, such as blocked roads, landslips and closed airports can also have an impact on a company’s income and ability to operate. In some cases, the business can’t function at all until the problems have been resolved.’

Julian recommends business owners talk to an experienced business insurance provider to check whether their current policy provides cover for such scenarios over the coming months. Julian particularly highlights the importance of having business interruption insurance in addition to cover for business assets.

‘It is important to check that your business insurance covers such disasters as flooding and wind damage,’ says Julian. ‘Don’t just assume that you are covered. Read through your policy so you understand exactly what level of protection you have. If you or your insurance provider spot any areas where you could be vulnerable, sort them out now.’

‘It is essential that companies buy the right type and amount of insurance and update their policies annually to include business improvements, major purchases and refurbishments,’ adds Julian. ‘That way you can help avoid nasty surprises this winter, if the unthinkable does happen.’
For more information on Business Mentors New Zealand, visit their newly updated website

TOWER INSURANCE SUPPORTS SMES THROUGH NEW PARTNERSHIP WITH BUSINESS MENTORS NEW ZEALAND

TOWER Insurance, one of the country’s leading providers of business cover, has teamed up with Business Mentors New Zealand, the charitable organisation which provides a national business mentoring service to support the development and growth of New Zealand’s small to medium sized enterprises (SMEs).

‘We are very excited about the opportunity to become a Business Mentors Partner,’ says TOWER Insurance CEO, James Douglas. ‘We understand the importance of nurturing New Zealand’s SMEs and hope that our support and business experience will help even more of them reach their goals.’

Ray Schofield, CEO of Business Mentors New Zealand, welcomes TOWER to the forward group of companies which support mentoring:

‘It is very encouraging that more prominent businesses such as TOWER are coming on board. Business Mentors New Zealand is a non-profit organisation, which is largely funded by patrons from the private sector. Without the backing of companies such as TOWER, we would not be able to keep providing our unique mentoring service to companies across New Zealand.

‘We are delighted to have established a relationship with TOWER and look forward to working with them.’

Business Mentors provides access to 1,600 volunteer mentors (who provide their experience, skill and knowledge free of charge), and the focus 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 is the owner’s main source of income.

For more information on Business Mentors New Zealand, visit http://www.businessmentors.org.nz/