$700,000 hit to firms in monster storm - survey

JAMES WEIR
Last updated 05:00 27/07/2013

Relevant offers

Industries

SBS bank CEO leaves bank in good shape Aussies find 'cold' start in rebuild tough Fears Postie Plus creditors to miss out Arena sponsor 'here for the long haul' Report queries uranium impact 'Warmest' June sees demand for power fall IkeGPS shares debut at discount Oceania investigates capital raising Xero plays long game in US Creditors may be out of pocket

Wellington's monster storm last month cost a group of businesses about $700,000 in direct damage and that's just for those who responded to a survey.

But as was the case with last weekend's big earthquake, most firms in Wellington were back in business within a day or so of the storm.

The survey by the Wellington Employers' Chamber of Commerce showed two unidentified firms each suffered more than $100,000 worth of damage in the giant June storm.

Another six suffered more than $10,000 worth of damage each, one of more than $50,000.

The survey of 95 chamber members was self-selecting, so those who had been affected were more likely to respond to the online survey. A third of those 95 said they suffered some sort of storm damage, the chamber survey showed.

Chamber chief executive Raewyn Bleakley said that although some businesses were hit hard in June, most were back on their feet within a day or so.

"That says a lot about Wellingtonians. We just get back up and carry on.

"Considering it was labelled our biggest weather event since the Wahine storm in 1968, I'm surprised there wasn't more damage.

"I think we came through it pretty well, all things considered."

She also said that just a "low proportion" of Wellington firms were affected by Sunday's earthquake. Some workers did not go into the city on Monday after a Civil Defence warning to stay away, but for most firms there had been no impact at all.

"It's a mixed bag and I don't want to under-rate the impact on a small number of businesses," she said. "[But] the vast majority of businesses have coped really well [since Sunday] and have got back up and running very quickly."

Wellington had always been known as a quake risk and had prepared for it.

"Most people have been happy to come back to work," she said. "And that will send signals of confidence to those outside Wellington."

Meanwhile, some of the storm damage from last month would be covered by insurance. But that would depend on the claimant's cover, including the excess. Some excesses were quite high, running to several thousands of dollars and so some businesses would bear costs below that.

But the higher the excess, the lower the insurance premiums they paid. It was common for businesses to have business interruption insurance, but that was becoming harder to get and more expensive since the Christchurch quake, so some firms have chose to increase their excess.

Ad Feedback

- BusinessDay.co.nz

Special offers

Featured Promotions

Sponsored Content