Small businesses in New Zealand are more concerned about cyber attacks, managing cashflow and retaining staff than natural disasters, even after a decade of destructive earthquakes and floods.

A Vero NZ survey of 900 SME businesses reveals natural hazards rank well down the business risk concerns, at 15th place.

EM Business Insurance at Vero NZ Chris Brophy says SMEs may be so relaxed about the imapct of natural disasters because they are insured.

“This research shows insurance is really doing its job of delivering peace of mind to SME owners,” Mr Brophy says. “Natural disaster is one major risk that SMEs can mitigate with insurance cover.”

The potential impact of a disaster garnered only 16% of responses. Small businesses are more worried about cost increases (33%), an economic downturn (30%), workplace accidents and political instability (both 18%).

Almost half the SMEs surveyed were confident their business was covered for natural disaster. SMEs insured via a broker were 67% confident, compared to 39% for those who bought insurance directly.

Businesses in earthquake-ravaged Canterbury were most likely to feel confident about their natural disaster cover (68%), with 42% of those in Wellington surveyed saying they are “confident”. Auckland residents were the least confident, with only a third believing they are adequately insured against natural disaster risks.

“Perhaps the lower risk of certain disasters in that region means they are less likely to have engaged with their insurance cover and are more likely to be unsure of how well they’re covered,” Mr Brophy said.

Accommodation and food services and agriculture and farming were the industries most worried about natural disasters – but also the most confident that they are covered – at 62% and 66% confident respectively.

Vero’s customer data shows 97% of the SMEs on its books have natural disaster cover.