Public Liability Insurance
Get the right public liability cover from top insurance companies.
Or speak to a broker 0800 374 691
WE WORK WITH TRUSTED A-RATED INSURANCE COMPANIES
General Liability Cover
Public liability insurance (otherwise known as General liability) in New Zealand protects you against claims made by third parties for injury or property damage caused by your business activities. This coverage is essential for safeguarding your business from legal liability risks, ensuring you are financially covered in case of legal liability arising from accidents or incidents.
What Is Public Liability Insurance?
Public liability insurance protects your business from claims made by the public for injury or property damage resulting from your activities. It covers legal costs and compensation payments if you’re held responsible.
Who Needs It?
Businesses interacting with the general public benefit greatly from public liability insurance. This includes tradesmen, hairdressers, shop owners, and restaurant owners. While it’s not legally required, having this insurance is highly recommended to safeguard against potential claims.
Businesses owners may need public liability insurance for numerous reasons. For instance, some contracts or landlords may require you to produce a public liability certificate of insurance.
It is necessary component of your business risk management, its affordability makes it a wise investment. In New Zealand, the average cost of public liability insurance typically ranges between NZ$40 – NZ$70 per month.
It’s crucial to have general liability coverage if your business:
Has premise accessible to the general public
Interacts with clients or customers
Deals with customer property
Rents or owns a commercial building
Sells, supplies, or manufactures products
What’s Covered?
Public liability provides essential protection for businesses against legal and compensation costs that arise from unexpected events. It’s designed to cover your business if a member of the public or a customer suffers an unexpected personal injury or property damage.
The coverage your commercial public liability policy provides:
Third party property damage
If your business activities inadvertently cause damage to a third party's property, public liability insurance can cover the costs. For instance, if you operate a construction business and accidentally damage a client's driveway, your policy can cover the costs of repairs or replacement.
Third party injury
Public liability also covers costs if someone is injured because of your business operations. This can range from a customer slipping on a wet floor in your restaurant to a bystander being hurt by falling construction material from your site.
Products liability
Your pl insurance can also cover you in case of a products liability claim. This is becuase it typically includes products liability insurance.If a product you have sold, supplied, or manufactured causes harm or injury to a consumer or damages their property, insurance can help cover the compensation costs. For example, if a customer becomes ill from using a product that you've sold, or if a faulty appliance starts a fire, your public liability insurance can cover the legal costs and any compensation payouts.
How much does public liability insurance cost?
Public liability insurance premiums are calculated on several different factors including:
- Limit of cover
- Type of industry
- Location
- Turnover
Public liability insurance NZ typically costs between $40 to $70 per month.
What’s Not Covered?
While public liability insurance offers extensive protection, it doesn’t cover every scenario. Exclusions typically include:
- Employee injuries (covered by employer’s liability insurance)
- Damage to your own property
- Professional mistakes (covered by professional indemnity insurance)
Understanding what’s excluded helps ensure you have comprehensive coverage tailored to your business needs.
Who needs public liability Insurance NZ?
Public liability is crucial for any business in New Zealand that interacts with the public, including customers, suppliers, or even passers-by. From retail stores and restaurants to tradesmen and professional services, these businesses are exposed to potential claims for property damage or personal injury caused by their operations. As the leading online insurance broker, we take pride in offering comprehensive public liability insurance, supporting a wide range of businesses, especially small businesses, in managing these risks effectively.
Even small accidents, like a customer slipping on a wet floor or damage to a client’s property, can result in significant financial consequences without adequate cover. Therefore most business owners purchase public liability insurance.
Top professions that need public liability
In New Zealand, this is a critical safeguard for many professions, protecting them against claims for damages caused by their business activities.
How do I get proof of public liability insurance
You can usually get proof of insurance same day when you purchase insurance through Gerrards.
Acquiring a public liability insurance certificate from traditional insurance brokers may require a few weeks, a delay that could create problems for policyholders who need instant insurance proof for an imminent contract or lease.
To obtain insurance coverage promptly, contact us. We may require you to provide some fundamental details about your business, such as:
- The name of your business
- The nature of your business activities
- The total number of employees
- Predicted annual income
- Years of experience in the industry
What does public liability insurance not cover?
PL is critical policy to protect yourselves from the financial burden of legal claims made by third parties for injury or damage. However, it’s important to understand that this type of insurance does not cover everything. There are certain key areas where Public Liability may not provide coverage. To ensure you’re fully informed, it’s advisable to compare public liability insurance policies to understand their exclusions and limitations.
Professional Errors
Public Liability Insurance does not extend to cover losses that occur as a result of professional errors or omissions. These mistakes could include giving incorrect advice, making a mistake in a piece of work, or neglecting a critical duty. For these circumstances, professionals such as consultants, accountants, architects, and others might need to consider Professional Indemnity Insurance, which is designed to cover the costs associated with defending or settling claims of this nature.
Damage to Owned Property
Public Liability primarily covers the damage caused to third party property. Any damage to your own business property, whether it's physical assets like office equipment, buildings, or inventory, is not covered. This is where a Commercial Property Insurance policy would be necessary, which protects your owned buildings against loss or damage.
Vehicle Liability
While Public Liability covers a variety of risks, it does not cover incidents involving vehicles. If a business vehicle causes injury or property damage, this would typically fall under a Commercial Vehicle Insurance policy. Additionally, if the vehicle itself is damaged, a policy holder would need to turn to their Comprehensive or Collision vehicle insurance.
Employment Disputes
If a current or former employee brings a legal claim against the business due to perceived unfair treatment, discrimination, wrongful termination, or other employment disputes, Public Liability will not cover these situations. To protect against such claims, ses you need to consider acquiring Employment Disputes Insurance.
Employee Injuries
Injuries that employees may sustain while at work are typically not covered by Public Liability Insurance. This is because such instances are usually handled by ACC or employers liability.
Other considerations when you purchase public liability insurance
When purchasing public liability insurance, several key factors can influence your decision. These considerations ensure that you select the appropriate coverage for your business needs.
Business Size and Type
The size and type of your business significantly impact the cost and level of coverage required. Larger businesses or those in high-risk industries, such as construction or hospitality, often need more extensive coverage. Ensure you assess the specific risks associated with your industry to determine the adequate level of protection.
Location
Your business location can affect both the cost and requirements for public liability insurance. Urban areas or locations with high foot traffic may necessitate more comprehensive coverage due to increased risk exposure. Evaluate the local environment and potential hazards when selecting a policy.
Prior Claims History
A history of prior claims can influence your insurance premiums. Businesses with frequent claims might face higher premiums, while a clean claims history could result in lower costs. Maintain detailed records of past incidents to provide accurate information during the application process.
Number of Employees
The number of employees within your business also affects public liability insurance costs. More employees typically imply higher risk levels, leading to increased premium rates. Consider employee roles and interactions with the public when determining necessary coverage levels.
Cost Factors of Public Liability Insurance
Understanding the cost factors of public liability insurance helps you make informed decisions for your business.
How Pricing Is Determined
Several key elements influence the pricing of public liability insurance.
Business Type and Activities: Riskier businesses, such as those interacting frequently with the public (e.g., retail stores or event organisers), face higher premiums due to increased exposure to potential claims.
Business Size: Larger enterprises, measured by annual revenue and employee count, generally pay more for coverage. For instance, a corporation with 100 employees might incur higher costs than a small shop with five staff members.
Location: Urban-based businesses often experience higher premiums compared to rural ones because urban areas may have a greater likelihood of incidents requiring claims.
Coverage Limits: The chosen level of coverage significantly impacts cost; opting for higher policy limits and lower deductibles increases premium amounts.
Claims History: Maintaining a clean claims history can lead to lower premiums since insurers view these businesses as less risky.
By considering these factors, you can better estimate your public liability insurance costs and choose suitable coverage tailored to your needs.
Public liability insurance NZ typically costs between $40 to $70 per month.
How much public liability cover will I need?
The amount of public liability insurance cover you need depends on several key factors.
Industry and Client Requirements
Government or local authority contracts often mandate suppliers to have between £5 million and £10 million in public liability insurance. Check specific requirements for your industry, as they can vary widely.
Risk Appetite
Businesses in higher-risk industries like construction or electrical work benefit from opting for a higher level of cover. Assess the risks associated with your business activities to determine an appropriate cover level.
Contractual Obligations
Clients may specify required levels of cover within contracts. Ensure you meet these obligations to secure and maintain client relationships. Industry standards also influence necessary coverage levels.
Medical and Ongoing Healthcare Costs
If your business involves activities that could result in serious injuries, consider higher cover levels to account for potential medical expenses and ongoing healthcare costs. This is crucial for businesses where accidents are more likely.
Claims History
While past claims don’t directly dictate the required level of cover, they impact your risk appetite. A history of frequent claims might prompt you to increase your coverage to better protect against future incidents.
Why might I need public liability insurance?
Public liability insurance protects businesses from claims of accidents, injuries, or property damage caused to third parties. Different professionals need this coverage for specific reasons.
Cleaners
Cleaners need public liability insurance to cover potential damages and injuries. If a cleaner accidentally breaks a client's item or if someone trips over cleaning equipment, the insurance covers compensation and legal fees.
Caterers
Caterers require public liability insurance to safeguard against claims related to food issues. Instances like food poisoning, allergic reactions, or damage to third-party property during catering events can lead to costly claims.
Window Cleaners
Window cleaners benefit from public liability insurance due to their high-risk tasks. If a window cleaner causes damage while working on a building or if someone gets injured by falling equipment, the insurance addresses these liabilities.
Builders
Builders must have public liability insurance because construction sites present numerous hazards. Accidents causing injury to passers-by or damage to adjacent properties are common risks covered by this insurance.
Plumbers
Plumbers need public liability insurance as their work often involves dealing with water systems that could cause significant property damage. For example, an accidental leak might result in substantial repair costs which the insurance would cover.
Electricians
Electricians require public liability insurance due to the nature of their work involving electrical installations and repairs. Faulty wiring leading to fires or electric shocks can result in severe consequences needing extensive compensation and legal defence.
Carpenters
Carpenters should have public liability insurance since they work with tools and materials that could inadvertently harm others. If a carpenter's activities cause injury or damage during a project, the policy provides financial protection for such incidents.
Other common questions about general liability insurance
The you need depends on the nature and size of your business and the level of risk it carries. Businesses that interact with the public frequently or engage in high-risk activities usually need more coverage. In New Zealand, the minimum level is typically $1 million with limits extending up to $10 million or more. However, it is advisable to assess your potential risk and consult with an insurance expert to determine the most suitable amount of cover for your specific situation. Consulting with a business insurance provider is crucial for obtaining tailored policy recommendations.
Public liability in New Zealand typically covers incidents that occur within the country. However, some policies can offer worldwide coverage excluding the USA and Canada by default. If you require cover for the USA & Canada you will need to request this and expect to pay much higher premiums due to their complex and litigious legal systems which typically results in much higher liability claims. It is essential to carefully review your policy terms and policy wording or speak with your insurance company or broker to understand the geographical scope of your coverage. If your business operates or services clients internationally, you will need to consider a policy that includes international coverage.
While both types of insurance aim to protect your business, they cover different types of risk. Public liability covers the cost of legal action and compensation claims made against your business if a third party (a member of the public) is injured or they have damaged property due to your business operations.
On the other hand, professional indemnity is designed to protect professionals who provide advice or services to their clients. It covers legal costs and damages awarded to a client if they sue you for a mistake you’ve made in the course of your professional duty, such as giving incorrect advice or making a professional oversight.
A public liability insurance exclusion is a specific situation, condition, or activity that your public liability insurance policy does not cover. These can include accidents caused by poor workmanship, intentional damage, contractual liability, or incidents occurring in excluded locations, among others. Exclusions vary between insurance providers and individual policies, so it’s crucial to read your policy document thoroughly and understand what is and isn’t covered.
To learn more, you are welcome to talk to one of our experts. They can guide you through the ins and outs of public liability insurance, help you understand your business needs, and assist you in making informed decisions about your insurance cover. Please get in touch with us through our contact page, or schedule a call at a time that suits you.
Public liability insurance isn’t a legal requirement in New Zealand. But, it’s often mandatory in certain industries like trades, where businesses must have it before entering worksites.
To make a claim on your public liability insurance policy:
Notify Your Insurer: Inform them immediately after an incident occurs.
Provide Details: Submit all necessary documentation including incident reports and evidence.
Cooperate Fully: Work with your insurer during their investigation process.
Follow Up: Keep track of the claim’s progress until resolution.
Understanding these aspects ensures you’re well-prepared when dealing with public liability insurance matters.
