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Employment disputes insurance

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How much does employment disputes insurance cost?

The cost of employment disputes insurance in New Zealand typically averages between $50 – $100 per month. Several factors determine the overall price, including the industry sector, the company’s risk management practices, and the claims history.

What is the average cost of employment disputes insurance? 

Businesses in New Zealand typically pay between $60 – $120 or around $1,000 annually for their employment disputes insurance.  

It is important to note that employment disputes insurance is often included in a business management liability insurance package which can make the cover more affordable for small businesses. 

Understanding employment disputes insurance cost factors

Three major factors that influence the cost of employment disputes insurance are:

Industry and Occupation

The type of industry your business operates in and the specific occupations of your employees greatly influence the cost of your employment disputes insurance. Some industries are riskier than others due to their unique operating conditions and regulations. For example, a construction company may face a higher insurance cost than a marketing agency because of the inherent risks involved in construction work. Furthermore, the specific roles of your employees matter, too. If your workers engage in more hazardous tasks, the risk of disputes is higher, driving up the cost of insurance.

Number of Employees

The number of employees within your company directly affects the cost of your employment disputes insurance. With more employees, the chances of an employment dispute occurring increases. More staff means more interactions, and thus more opportunities for potential disputes to arise, elevating the cost of your insurance premium.

Claims History

If your business has a history of frequent employment disputes, insurers will likely view your company as a higher risk. This history can result in higher premiums. Conversely, businesses with a clean or minimal claims history may be eligible for reduced rates as they’re seen as a lower risk.

Employment disputes insurance provides cost effective protection for your business

Employment disputes insurance is designed to protect businesses from the financial implications of disputes involving employees.

Financial Protection

Employment disputes insurance provides financial protection against claims from employees for issues such as wrongful termination, discrimination, and harassment. These claims can be extremely costly for businesses, especially smaller ones. The insurance covers the legal costs, allowing the business to continue operating without a significant financial burden.

Risk Management

This insurance serves as a crucial part of a company’s broader risk management strategy. It gives businesses the confidence to operate and make decisions without the fear of financial ruin caused by potential employee disputes.

Business Reputation

Having employment disputes insurance can help maintain your business’s reputation. If an employee dispute arises and becomes public, it can damage the company’s image. Insurance helps to handle these situations professionally, preserving your business reputation.

It’s crucial to have employment disputes insurance if:

  • Your business operates in a high-risk industry.
  • You have a large number of employees.
  • There’s a history of employment disputes.
  • You want to safeguard your business reputation.

How can you save on employment disputes insurance?

Saving on employment disputes insurance while ensuring adequate protection for your business is achievable.

Improve Risk Management

Enhanced risk management practices can lower your insurance premiums. Regular employee training, implementing anti-discrimination policies, and ensuring a safe work environment can significantly reduce the risk of disputes. Insurers may offer you lower premiums as they consider your business less risky.

Bundling Insurance Packages

One of the effective ways to save on employment disputes insurance is to bundle it with other insurance policies. Many insurers offer management liability packages, which include employment disputes insurance, directors and officers liability insurance, fiduciary liability insurance, and others. Bundling these coverages can often be more cost-effective than purchasing each policy separately.

Engage our employment disputes insurance brokers at Gerrards

Here at Gerrards, we know the ins and outs of employment disputes insurance. Our team of insurance brokers is equipped to guide you through the process of selecting the most suitable and affordable insurance policy. We have an extensive network of insurance providers, and our job is to negotiate on your behalf, compare offers, and secure the best rates for you.

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