Ensure your business is properly insured

For Nick, having a broker who genuinely understood his business made a noticeable difference.

Insurance isn’t something most fencing contractors think about day to day. But in 2026, underinsurance is quietly becoming one of the biggest risks facing businesses across New Zealand, including sole traders and small operators.

Many contractors assume their cover will hold up if there’s a fire, theft or breakdown. This issue is that as businesses have evolved in recent years, many insurance policies haven’t changed at the same pace.

Underinsurance doesn’t usually show up on renewal. Instead, it more commonly shows up when a claim is made, and by then, it’s too late.

Businesses carry more risk than ever

Compare how your business runs now to just five years ago.

Machinery is larger and more specialised. Vehicles and trailers carry higher-value gear. Jobs increasingly involve larger lifestyle developments, infrastructure projects, or longer distances between sites.

At the same time, expectations from councils, principal contractors and commercial clients around liability, compliance and continuity have increased.

Yet many insurance policies still assume equipment can be replaced quickly, that downtime will be short, that rebuilds are straightforward and that last year’s insured values are still accurate.

But these assumptions no longer stack up.

Business interruption is the hidden exposure

When something goes wrong, it’s rarely just the damaged asset that’s impacted.

For fencing contractors, this might mean a post driver or truck is out of use for months, delays waiting on imported parts, jobs paused due to access or reinstatement issues, all while wages, overheads and finance are still needing to be paid.

Business interruption cover is designed to keep a business afloat during this period.

Costs haven’t gone backwards

While construction and equipment cost inflation has eased from the peaks of recent years, the cost to repair or replace tools, vehicles and sheds remains well above pre-2021 levels.

If your insured values haven’t been reviewed recently, there’s a risk the shortfall won’t become apparent until a claim is assessed.

How you can reduce risk

This is where a broker who understands your business adds real value.

Gallagher brokers support fencing contractors across New Zealand and focus on how your business actually operates, not just what fits into a standard policy.

We can help ensure your insurance cover is aligned across:

• Tools, vehicles and trailers

• Public liability limits required by councils and larger clients

• Rural, commercial and lifestyle block work

• Subcontractor and employer responsibilities

• Business interruption cover that reflects real-world delays

Just as importantly, we help ensure those policies work together, so you’re not left guessing what is covered when it matters most.

Checklist – signs your business may be underinsured

If you tick any of the following, it’s worth getting your cover reviewed:

• Your machinery or vehicles haven’t been re-valued in the past 12-14 months

• You’ve added new plant, trailers or attachments, but haven’t updated your policy

• You rely on imported equipment or specialist parts

• You have no business interruption cover

• Your public liability limit hasn’t been checked against your current client requirements

• You’ve grown, added crews, or changed the type of work you take on

• You reduced cover in recent years to manage premium increases

Insurance is one of the largest costs for businesses, and it can be tempting to minimise it. But underinsurance rarely saves money, it usually just delays the cost until claim time.

Reviewing your insurance isn’t about over-insuring. It’s about staying operational, compliant and financially stable when something goes wrong.

Gallagher works with fencing contractors of all sizes. Get in touch at fcanz@ajg.co.nz for a review of your insurance to ensure it reflects the realities of the business you’re running today.

Supplied by:

Published in WIRED issue 81/June 2026 by Fencing Contractors Association NZ

You may also like: When things go wrong out there

Read WIRED online

© Fencing Contractors Association NZ (FCANZ)