Liability Insurance
As a small business, you typically have a fair amount of control over how your business operates. However, there’s always a chance that something could go wrong despite your best efforts. If that happens, you could be held liable and, without adequate liability insurance cover, this could impact your business financially.
If your business isn’t insured, this could put incredible pressure on your cash flow and finances, as you try to defend yourself against liability claims. Even if you’ve done nothing wrong, people can still bring a claim against you. Until their claim is proven to be baseless, you’ll need to defend yourself and try to continue operating your business.
Liability insurance can help you by providing funds to cover the cost of your legal defence as well as to cover damages awarded against you.
For help choosing the right insurance coverage, talk to an NZbrokers member today.
Liability insurance broker
While your business might not be a global powerhouse, your reputation is still absolutely crucial to your ability to compete. When things go wrong, your reputation can be the first thing to suffer, regardless of how ethically and correctly your business has conducted itself.
And, sometimes, things are simply out of your hands. You may have sold a product that malfunctions, one of your employees may have made a mistake, or someone may have been injured on your premises. There might not be much you can do to correct those issues after the fact, but you can protect your business from financial and reputational damage by acting quickly and decisively.
Liability insurance covers you so that, as the business owner, you won’t be held personally and financially responsible for the things you do or your employees do.
For example, if you run a landscaping business and your employee accidentally hits an underground pipe, bursting it and creating a leak, your business would likely be held liable. Liability insurance could cover you in that situation so you’re not out of pocket, letting you repair the damage and maintain your reputation as a trustworthy business.
As a small business owner, you’re likely to be too busy running your business to spend hours poring over insurance documents. Getting the right type of liability insurance can be tricky since some policies can seem similar but aren’t necessarily the same. Working with an experienced and knowledgeable broker can help identify the right insurance for your needs.
And, if you do need to make a claim, having a broker on your side can make it easier to manage the process and get a positive outcome.
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 small and medium business 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 small and medium businesses 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 small and medium businesses for this eventuality. |
| 3 | Professional indemnity insurance | If your business offers advice or services to people who then suffer financial losses because of something you advised or neglected to mention, 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. This applies to small and medium businesses as well as larger enterprises. |
| 5 | Management liability insurance | Management liability insurance is a comprehensive package of liability policies considered adequate for many businesses. By purchasing a package like this, you will often receive extra cover for little or no additional premium. The terms 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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