Source: Insurance Council of NZ
As storms continue to impact much of the North Island, many businesses are having to deal with flood and other damage. Others should heed local warnings and take action now to limit loss and damage including, if possible, putting things out of reach of potential flood water to come and moving vehicles to higher ground.
“Business insurance can cover everything from damage to premises, lost or damaged stock, equipment or goods owned by others, vehicles and cover for not being able to operate, said Insurance Council of New Zealand Te Kāhui Inihua o Aotearoa (ICNZ) Chief Executive, Tim Grafton. “As with others affected by this unprecedented climate-related event, business owners should register their claims with their insurer as soon as they can.”
In the first instance, business owners should only enter their premises if it’s safe to do so and treat anything that has been in flood water as contaminated. Electricity in flooded buildings should not be turned on until it has been inspected by an electrician. Having contacted their insurers, contaminated or damaged property should be photographed and put aside, taking care to deal with any hazardous materials appropriately.
Again, having spoken to their insurers, business owners should be able to undertake emergency repairs to make their premises safe and secure.
Any vehicles or electrical equipment that has been flooded should not be used. In many cases this may be written off, but insurer appointed experts will likely inspect flooded items to see if repair is possible.
Some businesses will also have business interruption cover which will cover them for loss of profit, up to policy limits, where property damage restricts their ability to maintain turnover.
“This event will be very difficult for many businesses,” added Tim. “As with many householders, the sheer scale of this event means that, despite the best efforts of all involved, business owners can expect repairs and the supply of new stock and equipment to take longer than normal. The situation is made worse by the fact that some businesses that would ordinarily be involved in helping others recover aren’t now able to because of the loss and damage they have suffered.”
Insurance flood and storm recovery advice:
– Continue to follow the instructions of Civil Defence and emergency services providers
– Do not do anything that puts your safety at risk or causes more damage to your property
– Contact your insurer as soon as you can
– Avoid entering flood water, either on foot or in a vehicle. Flood water can contain raw sewage and contaminants, conduct electricity and mask hidden hazards, and poses a serious hazard to health. It may be deeper, or moving faster, than you expect
– Try to make buildings safe and weatherproof but don’t make any emergency repairs unless it is safe to do so. Don’t start non-essential repairs without your insurance company’s approval
– If water has entered your property, don’t turn on your electricity until it has been inspected by an electrician
– Get essential services, such as water, electricity, gas and sewerage, repaired and keep copies of any invoices
– Do what’s necessary to make your premises safe and sanitary. When cleaning, wear a mask, gloves and overalls to minimise exposure to possibly-hazardous materials
– Photograph and put aside any water or mud-damaged goods that pose a health risk, such as saturated carpets, soft furnishings or food
– Take photos of any other damaged property to help speed up the assessments and claims process
– Mark, and take a photo of where flood water reached its highest within your property
– Keep any damaged items that don’t pose a health and safety risk
– Do not drive your vehicle if it has suffered water damage
