Public Liability Insurance

Both Public Liability and Professional Indemnity insurance can cover third-party claims against your business, but they each cover different types of claim risks.

Public Liability insurance protects businesses against claims resulting from an injury to a third party, or damage to a third party’s property.

Professional Indemnity insurance protects businesses if a client claims the advice, you gave was negligent and has resulted in financial losses.

Public Liability typically refers to cover for third party injury or property damage which occurs as a result of your business operations. Product Liability refers to cover for third party injury or property damage which results from use of a product you manufactured or work you completed.

Product Liability is often included within a Public Liability insurance policy.

While Public Liability insurance isn’t legally required for most businesses, many business owners wouldn’t want to go without it! Even though it’s not a legal requirement under New Zealand law, customers or other businesses who interact with your business may require you to hold Public Liability insurance in order to complete work for them, the level of cover required will vary between contracts.

Public Liability insurance is one of the most purchased types of business insurance. If you have a business where you operate on your client’s property, or in public spaces, or if your clients or members of the public come to your business premises, you may want to consider Public Liability insurance.

With BizCover there are 6 levels of Public Liability cover to choose from, being $1 million, $2 million, $5 million, $10 million, $15 million and $20 million. The amount of cover needed will depend on the size of your business and the kind of risks its faces. Lower levels of cover can be suited to small businesses with low risks, while higher limits are suited to large businesses, with multiple employees and high risks.
Policies are typically tailored to suit the type of industry your business operates within. However, the amount of cover required will vary from one business to another.

When deciding on how much cover you need for your business, consider the following factors:
• Do any of your contracts require a minimum level of cover?
• Has your industry body set a minimum level of cover for membership?
• Does your business or trade license require a minimum amount of cover?
• Do the terms of your lease require a minimum level of cover?
• Finally, think about what your level of risk and exposure could be. What kind of accidents could occur, and what could be the potential cost of a claim?

We can cover over 900 different business occupations, including many types of sole traders. Search your occupation or call us on 0800 249 268 to see if we can cover your sole trader business. Many sole traders can cover their businesses with Public Liability, this provides protection if something goes wrong. In some situations, sole traders may be required to prove they have Public Liability insurance before they can work on certain jobs for certain clients.

Business who interact with with members of the public, or operate in spaces other than their own property may benefit from the cover of Public Liability insurance. Business owners who operate in the Trades, Mainenace Services, and Consultants & Freelancer industries most often purchase Public Liability insurance.

Public Liability insurance is not a legal requirement in New Zealand, but may be required to work on specific contracts, to enter certain job sites, or to join associations in some industries.
Public Liability is one of the most common cover types for small businesses, protecting from costly lawsuits and compensation claims resulting from injuries or property damage.

Yes, you can include the people your business employs to your Public Liability policy. The number of employees can change the cost of your cover.

Every business is unique; it is up to the business owner to decide their appetite for risk. Some points to consider when deciding your level of cover includes
• The statutory requirements for your occupation
• The cover required by the contracts you work on
• The number of employees you are covering
• The worst-case scenario claim size for your business

The types of suitable cover vary between the risks of different industries. Some common types of cover include:
• Professional Indemnity insurance
• Cyber Liability insurance
• Tool and Portable Equipment insurance
• Statutory Liability insurance
• A Business Insurance Package

If you need to make a Public Liability claim, it is important to notify your insurer as soon as possible. You can start by filling out a claims form. Detail what has occurred, and attach any relevant information such as photos, documents, or repair quotes.

During the claims process do not admit guilt, fault, or liability, or negotiate to pay a claim without your insurers consent.

For more information on making a Public Liability claim visit our claims page