Widespread Business Interruption Across the Bay of Plenty Region

In January 2026, severe weather in the Bay of Plenty caused significant road closures due to widespread landslides and flooding. Major state highways and local roads were heavily impacted across Tauranga and the wider region. The Coromandel Peninsula also experienced heavy flooding and multiple road closures.

There were nine people who unfortunately lost their lives in the Bay of Plenty Region from causes directly relating to flooding and landslips. In addition to the casualties, businesses were flooded and evacuation orders were put in place. Road closures created significant transport challenges, further impacting local businesses and supply chains.

One Welcome Bay resident shared the losses she experienced after the event. When she lodged a claim through her broker, she discovered that key assets like orchards, shelter belts, artificial windbreaks, livestock and farm buildings were all left off the insurance schedules. This also meant the financial loss resulting from the damage was not covered under her business interruption policy. This is a good reminder for both brokers and the insured to be regularly updating and changing their insurance programmes as their business changes, if not, then every year at renewal.

Many transport operators are unaware that cover for route disruption is available. Principals can elect to insure against additional costs of working – this means that costs for additional kilometres and incurred hours for drivers can be paid in the event of a major route disruption. This sits outside of the commonly selected business interruption policy which is taken in conjunction with material damage.

This serves as an important reminder to understand the cover in place that you have and talk to your broker about the additional cover that is available to you.

Featured in NZ Trucking Association - February edition

Written by Jason Everard