Business Risk Mitigation and Contingency Plan, Disaster Recovery Planning | Business Risk Management Services from Taurus Business Advisers New Zealand

Business Loss as a result of the earthquake - what should you do?

Following the widespread damage in Christchurch and the Canterbury region following the earthquake on 22 February 2011, your attention is probably moving from ensuring your family are safe to your business, and assessing any losses that you may have incurred.

Almost all businesses will have Material Damage policies that will cover the cost of repairs to property, plant and equipment , and loss of inventory etc.

Business interruption insurance is an important component of your business risk management. This is exactly the time that that you need this policy and it may be able to provide compensation to you as a business owner.

Business interruption insurance can cover your gross profit, wages, additional costs of working, record re-instatement; and if a landlord, for loss of rents.

What should you do now?
Business interruption
Call your Taurus team member to assist you with making claims under your Business Interruption insurance policies.

We will work with you to minimise the financial loss to your business following the earthquake. Please have a copy of your policy at hand. That will provide us with the guidelines to perform the necessary calculations as there are subtle differences between insurers.

Contact your business insurance brokers to advise that you will be making a claim and request any documents or forms to assist us in making the calculations.

In order for your insurers to make an assessment you will have to have:

your latest financial year accounts completed, i.e. your March 2010 accounts. If you have not done so, we suggest that you bring your accounting records in as soon as possible
your records for the period from April 2010 to February 2011
and for comparison purposes, details of weekly trading for the 8 weeks prior to 22 February for both the 2011 and 2012 years.

Material Damage
In circumstances where you are a tenant and there is damage to property, take photographs for evidence to pass on to your landlord. This is especially important if you need to have items repaired immediately for security or safety reasons such as windows and doors.

Where there is loss to inventory, plant and equipment, schedule all damaged items and photograph if possible. You may need to keep physical evidence so do not dispose of those items until your insurers loss adjuster has viewed the items.

Again, contact your business insurance brokers and request the forms required to make a claim.

Material Damage - at home
If you have suffered any property damage at home please contact the Earthquake Commission on 0800 DAMAGE (0800 326243) providing details of the extent of damage, or lodge your claim online at www.eqc.govt.nz .

Your residence is covered for the first $100,000 (plus GST) by the EQ portion of your domestic insurance policy. If the damage is assessed to be greater than $100,000 the balance will be covered by your insurer. The EQC will also cover the first $20,000 (plus GST) of contents and the insurer the balance thereafter.

For further information, contact:
Michael Kohing
DDI: 03 345 8858