Accidents, disputes, natural disasters, or cyber threats — there’s a lot that can go wrong when running a business. Business insurance can help protect you from financial fallout, employee safety and the overall well-being of your business, but figuring out what cover you need may be confusing.
Whether you’re a sole trader, small start-up, or a growing company, this guide breaks down the most common types of business insurance in New Zealand, so you can make confident, informed decisions that help safeguard your business against unexpected setbacks.
Public Liability Insurance
Who needs it: Businesses that deal with customers or the public in person. For example, businesses in the retail, hospitality or trade sectors.
What it covers: Public liability insurance protects you if a customer, supplier, or member of the public is injured or has their property damaged due to your business activities. For example, if a client trips over a cable at your office or your staff accidentally damages a client’s property, public liability insurance can cover the legal and compensation costs.
Statutory Liability Insurance
Who needs it: All businesses operating in New Zealand must consider Statutory Liability Insurance
What it covers: Statutory liability insurance protects you, your business, and your employees against unintentional breaches of New Zealand law that can result in prosecution. Even if a breach was accidental, you could still be held legally and financially liable, and the resulting costs can be significant. This type of cover helps with legal costs, fines (where legally insurable), and investigation expenses for breaches relating to health and safety, employment law, environmental regulations, and more.
Professional Indemnity Insurance
Who needs it: Consultants, advisors, designers, accountants, marketers – anyone providing professional advice or services.
What it covers: If a client claims that your advice or service caused them or their business harm, whether through an error, oversight, or even a misunderstanding, professional indemnity insurance can help protect you.
It covers legal costs and compensation associated with allegations of negligence, professional misconduct, or a breach of your duty of care. Even if the claim isn’t justified, defending your business can be costly and time-consuming. This insurance ensures you’re covered if things go wrong in the course of delivering your expertise.
Employers’ Liability Insurance
Who needs it: Any business that employs staff.
What it covers: While ACC covers most workplace injuries in New Zealand, employers can still be held liable for other kinds of harm, such as mental stress or gradual injuries not covered by ACC. Employers’ Liability Insurance helps protect you from those costs.
Business Interruption Insurance
Who needs it: Any business that could be financially affected by temporary shutdowns.
What it covers: If your business has to stop operating due to an event like a fire, flood, or earthquake, business interruption insurance helps cover lost income and ongoing costs (like rent or wages) while you get back up and running.
Commercial Property Insurance
Who needs it: Businesses that own or lease buildings, equipment, or inventory.
What it covers: This protects your physical assets – from buildings and tools to computers and stock, in the event of theft, fire, vandalism, or natural disasters.
Cyber Insurance
Who needs it: Any business that stores customer data or relies on digital systems.
What it covers: Cyberattacks and data breaches are a growing threat. Cyber insurance helps cover the cost of data recovery, legal fees, notifying customers, and reputational damage if your systems are compromised.
How to Choose the Right Coverage
No two businesses are the same, so there’s no one-size-fits-all answer. The best approach is to assess your risks, talk to a qualified business insurance broker, and build a package that reflects your specific needs, industry, and growth plans.
Ready to Protect Your Business?
Business insurance is about more than just ticking a compliance box; it’s about peace of mind. With the right policies in place, you can focus on growing your business, knowing you’re protected if something goes wrong.
Whether you’re just starting out or reassessing your coverage, it’s a good idea to review your business insurance regularly to ensure you’re adequately protected as your business evolves.