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Small business insurance

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How much does small business insurance cost?

The cost of small business insurance in New Zealand typically averages between $100 – $200 per month. This cost can vary widely depending on the type of business, its size, the level of risk, and the amount of coverage desired.

What is the average cost of small business insurance? 

Businesses in New Zealand typically pay between $100 to $200 a month or around $1,600 annually for their small business insurance. 

Fields with higher risks of accidents, property damage or errors and omissions, such as construction, cleaning, manufacturing, property inspectors and engineers are more likely to pay higher premiums for their small business insurance.

Understanding small business insurance cost factors

What influences the cost of small business insurance? Several variables can impact the premium you’re quoted, lets look at the crucial factors.

Location and Size of Your Business

Where your small business is located and how large it is can also determine your premium. If your business is situated in an area prone to natural disasters like earthquakes, the cost might be higher. Additionally, businesses with more assets will generally have higher premiums as they have more at risk.

Nature of the Business

The risk associated with your specific business type plays a significant role in determining the cost. For instance, a construction business might face more hazards than an online store. As a result, insurance companies might charge higher premiums for businesses with more considerable potential liabilities.

Claims History

If your business has a history of making numerous insurance claims, insurers might view your business as high risk. This can lead to a higher premium. It’s similar to car insurance; if you’ve had many accidents, your premium is likely to go up.

Small Business Provides Cost-Effective Protection for Your Business

Small business insurance is not just another business cost; it’s an investment towards safeguarding your business’s future. Here’s why:

Risk Management

Every business, irrespective of its size, faces risks. These can range from natural disasters damaging your property to a client suing over a contract disagreement. Small business insurance ensures that you’re covered against such unpredictable events, preventing significant financial losses.

Enhanced Credibility

Having insurance portrays your business as reliable. Clients and customers tend to trust insured businesses more, knowing that if anything goes wrong, there’s a safety net in place. This can lead to more business opportunities and partnerships.

Peace of Mind

Running a business comes with its fair share of stresses. With insurance in place, at least you know that potential setbacks won’t spell the end of your business. It allows you to operate with confidence, knowing that unforeseen events won’t cripple your operations.

It’s crucial to have small business coverage if you:

  • You have physical business premises
  • Employees are under your payroll
  • You handle client data regularly
  • Your business uses specialized equipment

How can you save money on small business insurance?

Understand your small business insurance excess

Excess is a significant aspect of any insurance policy, including small business insurance. In simple terms, excess is the amount you agree to pay out of your pocket before the insurance company steps in to cover the rest of the claim. For example, if you have a $500 excess and a claim worth $2000, you will pay the first $500 and your insurance company will pay the remaining $1500.

To save money on small business insurance, you can choose a policy with a higher excess. This means you’re taking on more financial risk yourself, but it also means your insurance premium (the money you pay regularly to keep your insurance policy active) will be lower. However, be cautious and make sure the excess amount is something you can comfortably afford in case you need to make a claim.

Engage our small business insurance brokers at Gerrards

Here at Gerrards, we know the ins and outs of small business insurance. Our team of insurance brokers is equipped to guide you through the process of selecting the most suitable and affordable insurance policy. We have an extensive network of insurance providers, and our job is to negotiate on your behalf, compare offers, and secure the best rates for you.

Instead of spending your time and effort trying to understand complex insurance terms and comparing numerous quotes, let us do the hard work for you. By entrusting this task to us, you not only save money but also time. Remember, we work for you, not the insurance companies. Our mission is to get you the best possible deal on small business insurance while ensuring that your needs and requirements are fully met.

Small business risk management

Implementing robust risk management measures can also help you save on small business insurance. Insurance companies determine your premium based on how much risk your business poses. If you can show that your small business follows good practices to reduce potential hazards and claims, your insurer may offer you a lower premium.

You might be wondering, what does good risk management look like? It could be as simple as regular staff training, implementing safety guidelines, maintaining a clean and safe work environment, or making sure equipment is up-to-date and well maintained. By reducing the chance of accidents or mishaps in your small business, you present less risk to insurers, leading to lower premiums.

If you’re unsure of what risk management strategies to implement, we at Gerrards can help. Our team can offer you insurance advice and resources to ensure your small business is as safe and risk-free as possible, ultimately saving you money on your public liability insurance.

Top industries that need small business insurance 

In New Zealand, small business insurance can provide comprehensive and cost effective protection for many professions.

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