Business
Business insurance: protecting the company and the people who make it work.
For NZ SMEs and family businesses, the personal cover and the company cover sit on the same balance sheet. Key person, shareholder protection, business interruption, and group employee benefits. we structure them as one programme, not five silos.
Who it’s for
This page is for you if…
- SME owners and directors with personal guarantees on company debt
- Partnerships and shareholder groups with buy-sell agreements
- Businesses with key staff whose absence would dent revenue
- Employers offering group health, life, or income protection benefits
What it does
How the cover actually works.
- Key person insurance. lump sum if a critical employee dies, becomes disabled, or is diagnosed with a major illness
- Shareholder protection. funds buying out a deceased or disabled partner’s share, per the buy-sell agreement
- Business continuity / interruption. replaces gross profit during a disruption event
- Group benefits. health, life, and income protection cover for staff, often tax-advantaged
NZ context
What you should know about this in New Zealand.
Personal guarantees are common. and risky
Most NZ SME bank facilities are secured by a personal guarantee from the directors. If a director dies or becomes disabled, the bank can call the loan. Key person cover is the buffer.
Buy-sell agreements need funding
An agreement without insurance funding it is paper. Shareholder protection funds the buyout so the surviving owners aren’t forced into a fire sale or partnership with the deceased’s estate.
Group cover is often cheaper and easier-to-underwrite
Insurers offer simplified underwriting on group plans. useful for staff who’d struggle to get cover individually.
Common myths
Three things we hear that aren’t quite right.
“The business will be fine if I’m off for six months.”
Most NZ SMEs are owner-dependent. Six months of the owner missing usually means revenue falls 30–60%. Key person cover is the cash that buys time.
“Our shareholder agreement covers it.”
The agreement says what should happen. The insurance is what funds it actually happening. Without funding, agreements get re-negotiated under duress.
What an adviser does
Why this is hard to do on your own.
- Map personal cover, key-person, and shareholder protection so they don’t overlap or leave gaps.
- Structure premiums in the most tax-efficient way (some are company-deductible, some are not).
- Compare group benefit underwriting across NZ insurers for staff plans.
- Coordinate with your accountant and lawyer on the buy-sell agreement and trust structures.