General insurance is broadly defined as any insurance that is not life insurance. Some definitions include health insurance and some do not. For the purposes of this article, we will concentrate on protection against financial losses and protection for assets and valuables.
General insurance may be taken out by a business or commercial enterprise, or by a person or persons in their private capacity.
Some Of The More Common Types Of General Business Insurance Include…
• Professional liability insurance.
Accidents can and do happen and many times are a result of human error. If your business is facing allegations of negligence, defending the action in court can be expensive and time-consuming. This category of insurance also may include cover for public liability and claims of professional negligence arising out of the advice that you provide.
• Property insurance.
Commercial property insurance covers buildings, vehicles, stock, plant and machinery. It typically provides cover for: Natural disasters, fire, flood, theft, vandalism and accidental damage. Some natural events like earthquakes are not covered unless specifically added to the policy.
• Business interruption insurance.
Sometimes also called business continuity insurance, can ensure you have the funds available to cover a variety of financial commitments should you be unable to trade due to some unfortunate incident or circumstance. This type of insurance may cover gross profit, wages, payroll, loss of rents etc. and may be extended to include things like the cost of temporary premises or to meet financial obligations to the bank and/or shareholders for example.
• Product liability insurance.
Protect your business against claims of personal injury or property damage caused by products you have sold or supplied. It is designed to ensure that if this happens, you don’t have to pay any legal or court costs.
• Home-based businesses.
Please note that a standard homeowner’s insurance policy may only provide limited coverage for business property that is stored in your home. Some homeowner’s policies do not cover it at all. If you have clients or other visitors that come to your house for business purposes, then liability insurance is necessary.
Some Popular Types Of General Private Insurance
• Motor Insurance.
It is not compulsory in New Zealand to have car insurance. However, you should at least consider getting third party insurance to cover any damage you cause to other cars. Think about accidentally hitting a Rolls Royce. You can also insure against damage to your own vehicle in a collision as well as damage or loss of the vehicle due to fire, theft, vandalism or falling objects (like a tree).
• Homeowners insurance.
This type of insurance is to mitigate against damage to the property or loss of belongings due to certain perils, such as fire, theft, wind damage etc. Most eventualities are covered unless specifically excluded. Floods and earthquakes are generally not covered by a standard policy. Some policies help cover costs if you accidentally damage another person’s property or if a visitor is injured at your home.
• Travel insurance.
For the most part, people are concerned with covering the considerable expenses of emergency medical care and/or transportation if injured or falling ill while overseas. This type of insurance can also cover the reimbursement of pre-paid, non-refundable expenses if you need to cancel your trip before you depart due to various reasons. Travel insurance may also cover the loss of baggage or other valuable items due to theft etc.
These are by no means exhaustive lists.
Find Out What General Insurance Products Are Best For You
From the above, it should be clear that there is a huge spectrum of general insurance products available. Every entity, be it a business or a person, has unique circumstances, faces different risks and has to work within a specific budget. The best way forward is to use a professional insurance broker to initially assess the risk involved, then present a selection of available products that cover those risks.
Bonded NZ Limited is a specialist insurance broker operating in the New Zealand market. We provide specialist business liability insurance services, advising clients on risk and the appropriate and cost-effective options available. Contact us via our website or call Tony Parkes on 021 557 623 for a quote.