Liability Insurance

Business is filled with risks, most of which can be successfully mitigated. However, there is always a chance that something can go wrong. Occasionally, when things go wrong, company owners, board members, officers, or employees can be held accountable. In extreme cases, companies can go out of business and people can go bankrupt due to the costs involved in protecting themselves from allegations of negligence or wrongful decisions. Sometimes you won’t believe you have done anything negligent but that won’t stop another party making an allegation against you or your business. Having the right insurance in place is crucial to protect the people in the business by providing adequate funds to defend the allegation. For help choosing the right insurance coverage, talk to an NZbrokers member today.

Liability insurance broker

Even when operating in good faith, people can make mistakes, products can malfunction, and things can go wrong. When this happens, the cost to a business can be terminal, both in terms of financial costs and reputational damage.

Sometimes it won’t be obvious that you have made a mistake but another party is holding you or your business liable and you are forced to engage a lawyer to defend yourself.

Liability insurance covers a range of insurance products that protect people from being held personally and financially responsible for the things they do (or fail to do) during their work. It also protects businesses when their products or employees cause or are alleged to have caused damage to property belonging to other parties.

Getting the right type of liability insurance is the tricky part. There are many different varieties and some can seem quite similar. Until, that is, you read the fine print. Identifying and securing the right insurance cover for your needs is complex, so it’s important to work with an experienced and knowledgeable broker.

Working with a broker also helps in the unfortunate event that you need to make a claim. Brokers will act as your advocate and can streamline the process to maximise its chance of success.

So how do you know which broker to work with?

To get the best insurance for your business and your budget, you need to talk to the experts in corporate and commercial insurance.

NZbrokers is a network of independent brokers with extensive experience in liability insurance, and we have a broker close to you.

NZbrokers can help you:

  • find the best liability insurance cover for your business’s needs
  • review cover from the broadest range of insurers
  • understand premiums and risk management
  • manage insurance claims for a better chance of success.

*Talk to one of our independent brokers today to find out more. Click here to find the broker closest to you.

Getting the right liability insurance for your business

There are five key types of liability insurance insurance that you should consider:

1 Public liability insurance This insurance covers you for personal injury and property damage to third parties. Personal injury claims are rare because of the ACC regime in New Zealand therefore the most common claim example relates to property damage such as when a tradesman accidentally fractures a water pipe, causing damage. Another example is when your equipment falls on someone else’s property. A public liability policy will pay for your defence costs if you dispute liability or compensate the other party for their damaged property.
2 Product liability insurance If the products you sell, from electronics and toys to food and cosmetics, damage someone else’s property or it is alleged to have caused damage, they are likely to hold you responsible. Product liability insurance covers you for this eventuality.
3 Professional indemnity insurance If, as part of your job, you offer advice or services to people, who then suffer financial losses because of something you advised or neglected to do so, they may have a case against you. Whether their claim is justified or not it is likely you will need to engage a lawyer to defend yourself. These costs and potentially compensation to the other party will be covered by your professional indemnity insurance.
4 Directors and officers insurance Also known as D&O, this type of insurance protects company directors and officers personally when people hold them personally liable for the outcome of decisions made by the board.
5 Management liability insurance Management liability insurance is a comprehensive package of liability policies considered adequate for many businesses. Buy purchasing a package like this you will often receive extra covers for little or no additional premium. The policies in each policy will vary and therefore the knowledge of your broker will be most important when you are considered this type of package.

If you’re not sure, get someone who is

Choosing the right liability insurance provider for your business’s needs depends on a broad variety of factors. Working with an independent, transparent insurance broker like an NZbrokers member means you don’t have to spend time and resources investigating all the options and hoping you don’t miss something. Your broker will be able to find the right policy for you and you may even end up paying less than you think for a better cover.

Contact one of our independent brokers today to find out more.


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