When it comes to protecting your mortgage broking business for the long run, insurance for your business is likely to be an important consideration. Rather than looking at it as an expense, business insurance* can be viewed as a safeguard to protect a business from unforeseen events that could significantly impact on its operations. An event that could be extremely costly and potentially threaten their ongoing commercial activities, is a situation no small business owner ever wants to experience.
To give you a helping hand, we’ve outlined some of key facts to consider when it comes to insuring* a mortgage broking business.
Protect your business and your staff
As a business owner, you undoubtably take all the steps to ensure your working environment is safe by reducing risks and the opportunity for a potential claim to occur. However, the reality is, accidents do happen.
This is where Employers Liability insurance can assist a business. It is designed to provide cover for settlements or damages, including defence costs, as a result of an employee suffering bodily injury arising out of his or her employment (where the Accident Compensation Commission (ACC) does not provide cover).
What is Professional Indemnity insurance?
Professional Indemnity insurance protects professionals, like mortgage brokers, who provide professional services and advice to clients. Professional Indemnity insurance is an important form of protection for businesses that provide specialist services or professional advice. It is designed to respond to claims against a business for losses as a result of actual or alleged negligent acts or omissions in the provision of professional service or advice. Professional Indemnity insurance will also assist with the reasonable legal costs associated with responding to or managing claims which are covered by the policy.
Is insurance mandatory for your mortgage broking business?
Within New Zealand, some business sectors will find certain types of business insurance mandatory. Professional Indemnity insurance may be required if you are part of a professional association or industry body. =
Where business premises are rented, Public Liability insurance may be required by the landlord, with the level of cover outlined in the rental agreement. Public Liability or Professional Indemnity insurance may also be required under contracts with a large organisation or the government.
Public Liability insurance
Public Liability insurance is designed to provide protection for a business in the event a customer, supplier or a member of the public are injured (when not covered by the ACC) or sustain property damage as a result of the insured’s negligent business activities.
Regardless of whether a business operates on or off site, Public Liability insurance is likely to be an important consideration.
Why consider business insurance?
Business Insurance is designed to protect the contents and other important physical assets of a business against unforeseen circumstances such as accidental damage, theft, fire, storm. Business Insurance typically can provide cover for business assets such as business premises (if owned ), contents and portable equipment*.