Earthquake issues - insurance and commercial property
Earthquake issues - insurance and commercial property - expert comment
The central New Zealand earthquakes have put the spotlight on key issues for businesses, particularly insurance and property matters. Some business owners may have had to close the doors due to property damage. For others in the Wellington CBD, and other significantly affected areas, there may be no customers while people remain out of earthquake affected areas.
Jonathan Scragg, a partner at Duncan Cotterill in Wellington says business interruption insurance is crucial to help reduce the risk of financial loss caused by such situations. It can provide compensation to business owners while their doors are closed due to earthquake damage. For those without business interruption insurance, the earthquakes may leave business owners out in the cold.
Many landlords and tenants in Wellington will be currently taking stock of the damage caused to their premises. Under most commercial leases, the landlord will be responsible for repairs to the structure and exterior of leased premises. Landlords and tenants should check their lease documents to see where the legal responsibilities lie.