why Proactive Risk Management is essential for Insurability & Business Resilience
Written by Kelsey Craver - Regional Development Underwriter - South Island
In an era of rising claim costs, natural hazard exposures, and capacity constraints, loss prevention has emerged as a critical tool in protecting Material Damage and Business Interruption (MDBI) insurance outcomes across New Zealand’s commercial landscape.
For brokers, insurers, and business owners alike, proactive risk management is the key foundation for insurability, affordability, and long-term business resilience.
While MDBI cover remains essential for safeguarding physical assets and business continuity, its effectiveness is directly tied to the insured’s ability to prevent, detect, and respond to potential losses before they escalate. In many cases, particularly for high-hazard industries such as food and beverage, manufacturing, logistics, and warehousing, insurers are now demanding tangible evidence of loss prevention strategies as a condition of cover.
What Is Loss Prevention in MDBI Context?
Loss prevention refers to all measures taken to reduce the likelihood, severity, and financial impact of a loss event. In the context of MDBI insurance, this includes:
Fire prevention and suppression systems (e.g. sprinklers, thermal detection, fire doors/walls)
Building materials and construction standards (e.g. non-combustible cladding, compliant insulation panels)
Electrical maintenance and thermographic scanning
Machinery maintenance schedules
Security and theft deterrents
Natural hazard readiness (e.g. earthquake bracing to improve NBS, flood barriers)
Business continuity planning (e.g. alternate suppliers, critical spares, relocation plans)
At The Barn Underwriting Agency, we recognise that no two businesses are alike, and neither are their risks. That’s why we take a collaborative, solutions-focused approach to loss prevention, working closely with brokers and insureds to identify vulnerabilities and support practical improvements.
We provide these services via a small network of trusted third-party property surveyors and engineers, as well as through our own in-house expertise and technical resources. Our goal is to help clients not only meet insurer expectations but also reduce their total cost of risk through smarter risk management.
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What to know more about The Barn’s specialised products? Get in touch with our team to find out more.
p. 0800 114 982