What is indemnity?
The word indemnity is defined as “security or protection against a loss or other financial burden” or “exemption from legal responsibility for one's actions”. So when you pay an insurance premium the insurer is indemnifying you for the events covered by the policy, whether this is property damage or financial loss.
When you hear the term “indemnity insurance”, it most likely refers to errors & omissions indemnity or professional indemnity insurance. These both mean the same thing and provide cover for the financial loss another party experiences because of your actions. It doesn’t cover losses that result from physical damage, because this is covered by public liability (also known as general or broadform liability). Indemnity insurance is common among professions such as engineers, architects and lawyers, where their expert opinions are relied upon and getting it wrong could be costly.
Is it important for builders?
Under the Building Act builders have a duty of care to build something that is fit for purpose and they are increasingly being held responsible for their own expertise. This includes project management, site supervision and their ability to precisely follow designs & specifications. Making a mistake in this area could be costly and this is why errors & omissions indemnity is recommended for builders.
Pay the right premium
Make sure the sum insured for your vehicle reflects its true market value. It’s what your premium is based on and also what you’ll get in the event of a total loss. Try searching Trademe Motors for a vehicle like yours of a similar age, condition and mileage. The sum insured is your vehicle’s market value excluding GST.
Replacing your windscreen is painless
Replacing a broken windscreen is easy when you're insured. There's no excess or claim form to complete. Simply take the vehicle in to your nearest Smith & Smith or Novus, along with the name of your insurer and policy number. We recommend you phone head with your VIN number so they can make sure a suitable windscreen is in stock.
Get back on the road while your ute’s in the shop
Adding a “loss of use” extension to your policy means you can hire a replacement vehicle while yours is being repaired. It covers up to $6,000 for 60 days max, but does cost about an extra 50% of the premium and has a stand down period of 7 days. Bear in mind that most replacement vehicles will be sedans or stationwagons, rather than vans or utes.
Keep your asset register up to date
To make a claim under a tools & equipment policy you need to prove your loss. Make sure your asset register (which IRD expects you to have anyway) includes:
· Item description, including model number
· Serial number
· Date of purchase
· Purchase price
Only your tools & equipment are covered
This means tools owned by the insured entity (eg. the company). It does not cover tools owned by sub-contractors on a site, they should insure their own equipment. Employees may have cover under their own contents insurance in some cases and also under the terms of some employment contracts. Check your contract and or contents policy to find out.