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Our Essential Guide to Liability Insurance

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What Public Liability Insurance Covers

Public liability and product liability insurance covers small business owners and sole traders for compensation claims from customers or the public that have come about due to the actions of your New Zealand business. It’s there for when a business owner or sole trader finds themself on the wrong end of a compensation claim due to legal liability and the cost of defending your business.

If someone suffers a personal injury or accidental damage to their property and your business is found legally liable for that, it’s general liability insurance (public liability and product liability) that will cover your business if you have a claim made against you. This public liability insurance cover also protects your business against personal injury to your customers and property damage to their posessions as a result of a product you sell or supply. People injured by defective products may have the right to sue for damages and your New Zealand business may have to compensate them and incur legal costs.

Your business is not legally required to purchase public liability cover or product liability insurance but not having it will expose you and your business to expensive claims. Even if you do not have to pay a claim, defence costs that will be incurred in investigating your small business are likely to be very expensive.


Does My Business Need Public Liability Insurance?

Every business owner or sole trader could face a compensation claim due to legal liability. It doesn’t matter if your business is based in Auckland or Christchurch or anywhere else in New Zealand, public liability insurance NZ is considered a must-have type of commercial insurance.

But when accidents happen you want to put right what’s gone wrong as quickly as possible. If a client visits your shop or office and they suffer property damage or are unable to return to work because of a personal injury on your premises, you could face a legal liability insurance claim that could cost your business tens of thousands of dollars. If they leave their goods with your business for repair and they are damaged while in your care, your customer may seek compensation. Without public liability insurance, the cost to cover a claim would come directly from your business. For small businesses anywhere in New Zealand, this cost could put you out of business.


Where Can I Buy Public Liability Insurance?

Insure Online offers public and product liability insurance online where you can get a public liability quote and buy securely through our website. It can be purchased as a standalone cover or as part of a business insurance package with covers that are popular with small businesses. Our public liability insurance NZ product provides flexible options, including three different levels of cover - you choose the amount of insurance coverage you need.

You can get a public liability insurance quote online in less than ten minutes from our preferred insurance company. Our secure payment service allows you to pay online and we email your insurance documents and tax invoice to you immediately. You’re covered as soon as we send you your business liability insurance documents, subject to the terms of our public liability cover insurance policy and schedule. That's how our business operates.


How Much Does Public Liability Insurance Cost?

Insure Online’s cheap liability insurance provides a minimum $2m of cover per annum. Our quotes are based on three factors – the type of business you have, your annual revenue and the amount of cover you want to purchase.

A florist or stationery shop with annual revenue of up to $500,000 can pay as little as $270 plus GST for $2m of public liability insurance for a whole year. For a small additional premium, cover can be increased to $5m or $10m. We don’t charge any hidden fees in our quotes. Our product is backed by QBE Insurance, our preferred insurance company, who insure New Zealand’s businesses such as beauty salons.