Quake-hit business claims pass $900m
Business insurance claims for the November earthquakes centred on Kaikoura have passed $900 million, the Insurance Council of New Zealand says.
The November 14 earthquake caused devastation and severed transport links to the town which is reliant for its income on tourists, but it was in Wellington where the bulk of the claims have been made.
‘‘It is early days and the figures may change but indications are that there are more than 2500 commercial material damage and business interruption claims worth more than $900 million,’’ Insurance Council chief executive Tim Grafton said.
That is only for claims made to New Zealand insurers as some businesses are insured directly by overseas-based insurers.
The brunt of the claims has come from the Wellington region where two-thirds (65 per cent) of the total losses were claimed. This was followed by the upper South Island, which represented a quarter of the claims by value.
Business claims from Canterbury represented just 8 per cent of the total.
It was too early to indicate the value of residential claims, Grafton said. Homeowners had until February 14 to notify their insurers of any claims.
Peter Townsend from the Canterbury Employers’ Chamber of Commerce advised businesses to learn the lessons of the 2010 and 2011 earthquakes, including making sure their brokers were doing their jobs properly.
‘‘Some brokers were a lot better than others,’’ Townsend said.
Business owners dealing directly with insurers needed a rock-solid, nosurprises relationship with them, he said. He also warned businesses to understand their cover. After the 2010 and 2011 earthquakes, some businesses rushed to open their doors again, which undermined their business continuity cover.
Gary Young from the Insurance Brokers Association said the wording of some business continuity insurance policies could be problematic.
‘‘You are obligated to minimise your loss, so you can get caught out,’’ Young said.