Reducing your risks
As the saying goes: hope for the best but plan for the worst. Here are some tips to help you manage your business risks and smooth out the unlikely event that something goes wrong in your business.
Liability
Your business activities could create commercial and civil liability. This is a hard risk to manage. Even the best-run businesses can’t foresee all liability they could possibly face. Insurance can help protect your livelihood by reducing, minimising, or eliminating your exposure to liability.
Money
Reduce the amount of cash kept on your premises by encouraging EFTPOS transactions, banking cash frequently, and paying employees by direct credit. Avoid a set pattern or time for banking to frustrate potential thieves.
Vehicles
If you use your car for business, make sure it has business insurance cover. While it’s usually a bit more expensive, it’s generally better suited for business owners.
Stock
If you insure your stock or products, remember that most insurance policies will only pay out for lost stock at wholesale value, not retail. So it's important to regularly review the value of the stock you hold.
Working from home
If you work from home, items such as computers, office equipment, and your vehicle may no longer be covered by your domestic insurance policy. Check the cover on your existing home or contents policy or speak with your insurer.
Business data
Your business data (such as your customer database) is a key asset, so you need to protect it:
- Back up the data files you work on every day, and do a system back-up weekly
- Engage a reputable IT company to help identify your risks and protect vital intellectual property from being compromised
- Keep up to date with regulatory changes, e.g. updates to the Privacy Act, that could affect how you store and use data. Watch our webinar recording on changes to the Privacy Act.
Managing risk in business
Risk is a part of business but with a good risk management plan you can determine not only what risks your business is exposed to but also what you want to do about it. This video will help you get started on identifying the potential risks to your business and your next steps.
Assessing your insurance needs
When it comes to business insurance, one size does not fit all. What type and how much insurance cover you need depends on your unique business.
For example, if you’re a consultancy services business, your focus might be on insuring against potential liability arising from the advice you give to clients. If you’re a manufacturing business, you may need to think about insuring your plant and stock so you can continue to make your products. If you’re a tradie, you may want to insure your tools and your vehicle.
You should also consider your ability to continue earning by having income protection in case something happens to you and you can’t work.
That’s why talking to an expert is important. They’ll be able to:
- Sit down with you and assess your business
- Identify the different risks and exposure presented by your business
- Draw up a plan to offset some of those risks with insurance solutions
- Show you what fully insured looks like
- Help you make an informed decision on choosing the appropriate cover levels for the exposure you face.
Types of business insurance
To help you think through your needs, here’s a list of the main types of business insurance available:
- Business asset insurance
- Business interruption insurance
- Cyber insurance
- Liability insurance
- Life and disability insurance for key people
- Vehicle insurance, e.g. for work vans or delivery vehicles.
Review your insurance regularly
Your business changes over time, so it’s important your insurance changes with it. For example, you might get bigger, hire more people, have a higher turnover or enter a new market.
Sit down with your insurance company or broker at least annually to assess whether you have the right level of cover, and whether you have new or different risks you need to insure against.
Remember, most business insurance premiums are tax deductible as business expenses.
How ANZ can help
We’re proud to partner with specialist risk and insurance businesses who can work with you to customise a plan to suit your business needs. An ANZ Business Specialist can put you in touch with the right person to get the ball rolling, and they’ll offer you no-obligation advice tailored to you.
Contact an ANZ Business Specialist
Our specialists understand your kind of business and the challenges you face as a business owner. We can help you figure out how to make your business grow and succeed.
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Important information
We’ve provided this material as a complimentary service. It is prepared based on information and sources ANZ believes to be reliable. The content is information only, is subject to change, and isn’t a substitute for commercial judgement or professional advice, which you should seek before relying on it. To the extent the law allows, ANZ doesn’t accept any responsibility or liability for any direct or indirect loss or damage arising from any act or omissions by any person relying on this material.
Please talk to us if you need financial advice about a product or service. See our financial advice provider disclosure at anz.co.nz/fapdisclosure
For insurance, this is a summary only of cover and features that may be available. Terms, conditions and exclusions apply. For more details contact any ANZ Business Centre or phone 0800 269 249.
Our insurance solutions are underwritten by third party insurers. All insurance products are subject to terms, conditions and exclusions set out in the applicable policy document. No member of ANZ Bank New Zealand Limited (ANZ) or its related companies guarantees the underwriters and insurers, or any of the products issued by them. ANZ may receive commission on any policy it arranges or on any referral to Arthur J. Gallagher & Co (NZ) Limited (Gallagher) or Chubb Life Insurance New Zealand Limited (Chubb Life).