The liability package for the ICNZB members consist of 4 main policies with optional Cyber. But as part of our advice process, we would also help you assess other general risks, so I’ve included these in a summary below.
This policy provides members with cover for actual or alleged, acts, errors or omissions from their professional advice.
Public or General Liability
This policy provides members with cover for claims resulting from accidental injury or damage to third party property. It’s important to note that the injury or damage needs to be the result of a negligent action.
This policy provides cover for claims or investigations that have resulted from a breach of a New Zealand statue. So, if someone was to be injured in a member’s office due to poor health and safety, they might face a prosecution or investigation from Worksafe. This could potentially need to be defended or fines or reparations may eventuate. It should be noted that in New Zealand, fines cannot be insured against so if a fine was the result of a workplace injury the member would have to pay it.
This policy covers claims from employees for injury or illness that aren’t covered by ACC. We understand that many Bookkeepers are sole traders, but Bookkeepers with staff face the possibility an employee could suffer an injury, such as RSA, that ACC won’t cover, and the employee might seek to recover treatment costs from their employer. Other illnesses such as stress or mental anguish could also result in a claim from an employee. This policy is very affordable, and most insurers throw it in almost as a freebie, so it’s typically packaged with the Public and Statutory Policies, which is what we’ve done for ICNZB members.
This policy is becoming more and more important as it provides cover to small businesses for “cyber” exposures such as viruses, ransomware, data theft, hacks and even some business interruption cover.
Many small business owners think they have no exposure as they are too small to care about. But small businesses are often targeted by hackers as their cyber security is likely to be a lot less robust than that of say KPMG, Deloitte etc.
Bookkeepers also hold or have access to a lot of valuable information on third parties. This is often very attractive to hackers and can be sold on the dark web. New Zealand now has mandatory reporting laws so in the event you are hacked and lose third party information there will be a cost relating to notifying those involved as well as potential fines if it isn’t don’t correctly. Cyber insurance is fast becoming as important if not more so than Professional Indemnity for many companies.
Fire & General Insurance
These are policies to cover your physical assets such as your office and contents, mobile electronic devices, business interruption and commercial motor vehicles. New Zealand is prone to earthquakes and more and more floods, so it is important you have your physical assets insured.
Personal or domestic insurance.
Members should also think about their homes, contents personal vehicles etc. It’s very hard to work if you lose your house to a fire or flood. By placing these policies through a broker such as Abbott you have someone advocating on your behalf with insurers if the worst happens.