SMEs Urged to Include Statutory Liability

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.

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

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Contact Details:

Ray Schofield, Business Mentors New Zealand: 0274 735 435 or ray.schofield@bmnz.org.nz

Jennifer Boyes, Intermediary Communications: 09 367 1133 or 021 667 873 or jennifer@intermediary.co.nz

Further Information:

Business insurance

TOWER recognises that every business is different. Its policies are flexible, easy to understand and quick to set up.

TOWER Tailored Business Policy

Business Assets is the base cover provided by the TOWER Tailored Business Policy. It provides cover for key physical business assets such as buildings, tools, plant, machinery, contents and stock for unintended and unforeseen physical loss or damage.

Customers can choose to add cover for:

• Business Interruption - cover for financial loss when a business cannot operate as a result of damage covered under the Business Assets Policy.
• Liability - cover for general, employers and statutory liability.

As well as the TOWER Tailored Business Policy, TOWER also offers cover for company vehicles with the TOWER Motor Vehicle Policy - Tailored Protection. TOWER also offers Health, Life, Trauma, Permanent Disability, Key Person and Business Expenses Cover for small to medium sized businesses.

For all TOWER policies, TOWER’s normal underwriting criteria will apply. Please see the policy document for terms, conditions and exclusions. Policy documents are available at www.tower.co.nz or by calling 0800 808 808.

Business Mentors New Zealand was established in 1991. 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. A registration fee of $100 + GST applies, which entitles you to use the mentoring service for two years. This is the only cost to you – the mentoring you receive is free!

More details can be found at www.businessmentors.org.nz or by calling 0800 209 209.

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