Vero Voice

When it comes to business insurance, size does count

By Campbell Mitchell
Executive General Manager, Customer Marketplace

29 May, 2017

If you own a business that's growing or expanding, any number of things could be on your mind - from financial worries to finding employees to business planning.

One thing that may not be on your mind is insurance. But as your business grows, protecting it can become more complex and there can be real value in getting expert insurance help from a broker or adviser.

We recently released the first Vero Small to Medium Sized Business (SME) Insurance Index, which explores the value that SME customers get from their relationships with brokers and advisers. Through this research, we want to help business owners - who may be buying insurance direct when they first start out - understand how advice could help them protect their business.

The rise of direct insurance

In Australia, the use of brokers by SMEs has been significantly impacted by the rise of online insurance purchasing. Although that has been slower to happen here, we expect eventually to see a similar trend in New Zealand.

Through the Vero SME Insurance Index, we wanted to understand what value our customers are getting from their relationships with their brokers and advisers, and help business owners - who may be comfortable buying insurance direct when they first start out - understand how a broker could help them as their business grows more complex.

Right-sizing your insurance

Our research shows that there are a couple of different factors that influence whether a small business will use a broker to purchase their insurance, but the main one is the size of the business.

36% of businesses with 0 to five employees are likely to purchase their insurance directly from an insurer or a bank. For small businesses of six to 19 employees, that number drops to 23%.

We believe that this is because as your business grows, protecting it becomes more complex.


6 reasons to use a broker or adviser

For our SME Index, we surveyed over 1000 small to medium sized businesses in New Zealand, to uncover the value that they get from their brokers. Here's what they said:


to save time


to get the right insurance at the right price


for peace of mind


because their broker understands their business needs


to advocate for them with their insurance company


for managing the claims process

Make it a decision - not an accident

Everyone - and every business - is different. 

You may buy your insurance through a broker from your first day as a sole trader, or you may feel comfortable handling your own insurance even with 10 or 20 employees.

But we encourage you to think about whether your insurance needs are changing, and whether you still have the knowledge and time to manage them or whether you'd benefit from the help of a broker or adviser.

Want more information?

Have a look at the different types of Business Insurance cover we offer, or if you're ready to speak with someone about your unique needs, get in touch with a broker.

Find a broker

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The information in this article has been compiled from various sources and is intended to be factual information only. Full details of policy terms and conditions are available from Vero Insurance New Zealand Limited or your financial adviser. For advice on product suitability, please contact your financial adviser. While we take reasonable steps to ensure that the information contained in this article is accurate and up-to-date, it is subject to change without notice. Vero Insurance New Zealand and its related companies does/do not accept any responsibility or liability in connection with your use of or reliance on this article.