Do I Need Public Liability Insurance?
Insurance for public liability is an essential small business insurance cover needed in today’s world.
Business liability insurance protects your business against financial loss caused to others. This can be as a result of the condition of your property. It can be from negligence or injury caused to a person, such as a customer. This can include actions by your business that result in the death of another person.
What is Public Liability Insurance NZ?
NZ public liability insurance is often referred to as business liability insurance cover or general liability insurance. It covers two exposures. Those exposures are public liability and products liability.
Public liability insurances cover a business, a contractor or an event. It can also cover a building. It covers the costs from legal action if a business, contractor or property owner are found liable for death or injury, loss of or damage to property, or financial loss resulting from your negligence.
This is recommended insurance for small business, for a home based business NZ wide and for personal trainers and marriage celebrants. It is often compulsory for building contractors and tradespeople.
What is Product Liability Insurance?
This insurance for businesses covers you for damage or injury that your products might cause to another business or person.
This type of business insurance is very important. People who believe they have been injured by your product can take legal action against you. It doesn’t matter if your business is a manufacturer, importer, distributor, wholesale or retail business. Any of these businesses can be sued for damages. Being sued for negligence can be expensive because you could be liable for damages, investigation costs and legal defence costs.
Business owners often ask is public liability insurance a legal requirement? This insurance for a small business is not compulsory. We recommend that you purchase product liability insurance if you sell, distribute or manufacture products. As insurance brokers, we also recommended that you have this simple insurance for a business if you import products into New Zealand.
How Much Does Public Liability Insurance NZ Cost?
Our insurance quotes start from $225 per year. The cost for this cover is based on three factors that will be specific to your business. These three factors are: 1. Your type of business
2. Your annual turnover or sales
3. The level of cover you want to purchase
Your type of business will determine the level of public liability risk, and therefore the cost. Low risk business types will pay less for business insurances than higher risk businesses. For example, a florist shop is considered low risk by most public liability insurers. A tattoo artist is considered higher risk. Therefore a florist shop would expect to play less for cover than a tattoo artist.
Businesses that turnover or sell more goods and services in a year are usually exposed to more customers. Therefore they are considered to be more exposed to legal liability for accidental damage to someone else. A business turning over less per year will pay less for their small business insurances.
Our insurance broking public liability product comes in three sizes. As registered NZ insurance brokers, we can arrange NZ insurance for either $2m, $5m or $10m limit of indemnity. You choose the level of cover you want.
How Do I Get Public Liability Insurance?
It is best to buy from a liability insurance broker such as Insure Online. An online insurance quote NZ wide from us takes only 10 minutes. Our insurance quotes online provide you with an insurance comparison NZ business owners will find easy.
We ask that every sole trader and small business owner read the policy wording before buying to make sure it is suitable for their business. It contains more details, including terms and conditions, cover for legal defence costs and for personal injury to customers and the general public.
Our newsroom contains many blog articles to help with your liability insurance knowledge. You can also click on our links to statutory liability insurance and employers liability insurance to learn more.
To find out how much public liability insurances will cost, get an insurance quote online now.