Video transcript: Be prepared, get insured

[Audio/Visual: Upbeat music starts playing with blue introduction screen with white business.govt.nz logo. The words “Be prepared, get insured” appear on screen for a few seconds. The screen cuts to a profile shot of the male presenter against a blue background. He is wearing an ivory blazer over a beige dress shirt.]

Unexpected disruptions and disasters can be stressful and expensive for your business. Thankfully, insurance can help protect you against specific risks. But how does it work?

You pay premiums to an insurance company — often monthly or once a year — and the insurance company promises to help if something goes wrong, like paying for repairs, replacements, or covering costs.

[Visual: the screen cuts to a shot of two builders on a construction site. They are wearing tool belts and measuring a building foundation. The screen then cuts to a shot of a man in high-vis sitting at a desk scrolling on his phone. There is a paper form on the desk and a pen next to it.]

The risks you face and the policies available to cover these risks vary from business to business, and by industry.

[Visual: the screen cuts to a shot of a women standing at the front desk of a hair salon, working on a tablet. After a few seconds, the screen cuts to a shot of a chef plating food in a commercial kitchen.]

[Visual: the screen cuts to a shot of the presenter on the left hand side against a blue background. A title appears in the top right of the screen in white, bold text “Common risks include”. A subtitle appears underneath the title “Natural disasters”. Below this, bullet points appear as the presenter lists them:

• Floods
• Fire
• Earthquakes]

Common risks include:

Natural disasters, like floods, fire, and earthquakes.

[Visual: the subtitle changes to “Theft of things”. Bullet points appear below this as the presenter lists them:

• Equipment
• Stock damage
• Loss in transit
• IT crime
• Hacking]

Theft of things like equipment, stock damage, loss in transit, IT crime or hacking.

[Visual: the subtitle changes to “Injury or Property damage”. Bullet points appear below this as the presenter lists them:

• Products or services
• Product recall
• Employment dispute
• Health and safety breach.

After a few seconds, the title, subtitle and bullet points disappear from the screen.]

Injury or property damage caused by your products or services, product recall, employment dispute, or a health and safety breach.

No single policy can cover all your business risks so it’s likely you’ll need more than one.

So, let’s talk about the most common policies.

[Visual: the screen cuts to a shot of a man wearing protective goggles and cutting wood with a circular saw. After a few seconds, the screen changes to a shot of a woman working at a desk with a laptop and professional camera. The screen then cuts to a shot of a man in a workshop looking at a laptop. There are tools hanging on the wall behind the laptop. After a few seconds, the screen cuts to a shot of a woman looking at a tablet. She is standing at the open back door of a work van full of piping and hoses.]

Asset insurance can cover theft and damage items you own and use for work, like computers, furniture, tools, specialist equipment, vehicles and stock. There are two main types.

[Visual: the screen cuts to a shot of the presenter standing on the left hand side against a blue background. A title appears on the top right of the screen in white, bold text “Asset insurance”. Below the title, a bullet point appears:

• Indemnity]

Indemnity is the most common policy type, which takes wear and tear into account when paying your claim.

[Visual: a second bullet point appears below the first:

• Replacement]

The other is replacement, which pays the full costs of replacing an item.

[Visual: the screen cuts to an overhead shot of office buildings and garages in a commercial area.]

Commercial property insurance is typically taken out by the owner of the property.

[Visual: the screen cuts to a shot of the presenter on the left hand side of the screen. A title appears on the top right in white, bold text “Commercial property”. A subtitle appears underneath the title “Material damage policy”. Below this bullet points appear as the presenter lists them:

• Natural disasters
• Fire
• Burglary.

All text disappears after a few seconds.]

It’s usually in the form of a material Damage policy, covers you, and any lender that you have borrowed funds from for your business, from natural disasters, and other events such as fire and burglary that cause loss or damage to stock, plant, business contents and buildings. You don’t usually take out this insurance if you lease your business premises.

[Visual: the screen cuts to a shot of a large building site with scaffolding, building wrap and a crane.]

A business interruption policy covers you when your business is interrupted by natural disasters, fire and burglary-

[Visual: the screen cuts to a profile shot of the presenter on the left hand side of the screen. A title appears on the top right in white, bold text “Business interruption”. Below this, bullet points appear as the presenter lists them:

• Commercial property material damage policy
• Interruption losses

The bullet points disappear after a few seconds.]

(events that are covered in a commercial property material damage policy), and you suffer losses because of the interruption.

[Visual: new bullet points appear below the “Business interruption” title as the presenter lists them:

• Wages
• Rent
• Utilities]

It covers you for an agreed period so that you can still pay wages, rent and utilities and have some funds left over for profit. You can take out this type of policy if you lease your business premises.

[Visual: the screen cuts to a shot of a man working on a tablet in a diving shop. There are wetsuits, buoyancy devices and oxygen tanks in the background.]

Liability insurance is useful if you do work for other organisations.

[Visual: the screen cuts to a profile shot of the presenter on the left hand side of the screen against a blue background. A title appears on the top right in white, bold text “Liability”. Bullet points appear below this as the presenter lists them:

• Legal expenses
• You or your employees]

It covers the costs if an organisation sues you or one of your employees.

[Visual: the bullet point list is replaced with a new point:

• General liability cover]

There are several types of liability insurance, but we recommend that all businesses and self-employed people have the most basic - general liability cover.

[Visual: the screen cuts to a shot of a man working at a desk with three monitors. The screens show a map, data visualisation and an email inbox. After a few seconds, the screen cuts to a shot of the presenter on the left hand side of the screen against a blue background. A title appears in the top right in white, bold text “Cyber security”. Bullet points appear below this as the presenter lists them:

• Data breaches
• Website hacking
• IT scams

All text disappears after a few seconds.]

Cyber security insurance is a broad area covering data breaches, website hacking and IT scams. Make sure the policy you choose covers your areas of risk.

There are many other types of insurance that may apply to you, depending on what industry you’re in. Including:

[Visual: a title appears in the top right in white, bold text “Other types of insurance”. Bullet points appear below this as the presenter lists them:

• Marine insurance
• Travel insurance
• Transit insurance
• Product recall
• Trade credit]

Marine insurance, travel insurance, Transit insurance, product recall, and Trade credit. We’ve included more details about these in the learning summary.

[Visual: the screen cuts to a shot of a man and woman sitting at a dining table looking at a laptop. There are paper forms and a phone on the table.]

Even if you’re just starting out, it’s a good idea to start thinking about your insurance needs right away — even if these needs are very basic.

[Visual: the screen cuts to a man sitting in front of a computer. He his holding a stack of papers and in thought. After a few seconds, the shot cuts to three people sitting on couches. There are papers, a clipboard and a calculator on the table in front of them.]

It’s always a good idea to review your needs each year to make sure your growth and changes are taken into account.

[Visual: the screen cuts to a profile shot of the presenter in the centre of the screen.]

And when setting your insurance budget, think about the cost of NOT having the right cover, and how that could negatively impact your business.

When it comes to making a decision, here are some common risks to avoid:

[Visual: the screen cuts to a profile shot of the presenter on the left hand side of the screen. A title appears in the top right “Common risks to avoid”. Below this, bullet points appear briefly before disappearing:

• Not reviewing]

Not reviewing the sums insured — make sure you review how much you need covered at least annually, or after any major change to your business.

[Visual: the bullet point changes to:

• Not disclosing important changes]

Not telling your insurer about important changes, like to your business model — you can’t claim for something not covered in your policies.

[Visual: the bullet point changes to:

• Not telling the whole truth]

Not telling your insurer the whole truth, for example a legal issue you didn’t mention — keeping back crucial information can lead to a rejected claim.

[Visual: the bullet point changes to:

• Not getting advice]

Not getting advice. Insurance is a specialist area, and many people wrongly assume they can get one policy — or a package of policies — that covers all their business activities. This isn’t the case.

[Visual: the screen cuts to a profile shot of the presenter in the centre of the screen.]

Insurance policies often use specific, complex and even confusing language, so an insurance broker can help you to unpick anything that’s unclear, and help you understand what a policy does and doesn’t cover, to find policies that suit you.

[Audio / Visual: The music slowly fades out while a blue outro screen appears with the business.govt.nz logo in the centre of the screen. This logo disappears and the Ministry of Business, Innovation, and Employment logo appears on the left-hand side and the Te Kāwanatanga o Aotearoa, New Zealand Government logo appears on the right-hand side.]

[Video ends]