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Labour Only Insurance

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Labour only subcontractor insurance

Labour only business insurance NZ

Labour only insurance is a customised insurance package designed to address the unique needs and risks of businesses that focus primarily on providing manual labour. This insurance aims to protect against financial losses, liabilities, and other unforeseen events that may affect labour-only contractors. In essence, it’s tailored to secure the well-being of businesses that primarily deal in manpower.

Why is labour only subcontractors insurance important? 

Operating in the labour industry exposes businesses to certain risks, like accidental injuries or damage to a client’s property. Labour only insurance serves as a protective shield against such unpredictabilities, ensuring businesses can operate smoothly without facing potential financial setbacks.

In New Zealand, the average cost of labour only insurance typically ranges between $50 – $100 per month. 

It’s crucial to have labour only coverage if your business:

  • Primarily offers manual labour
  • Operates on clients’ premises
  • Hires sub-contractors frequently
  • Faces potential injury risks daily

What insurance covers are typically included in labour only insurance? 

Public Liability

This policy covers common labour only business risks including bodily injuries, customer property damage, and advertising injuries. It’s required for most commercial leases.

Best For
  • Business Accident Coverage
  • Third-party Damages
  • Legal Cost Protection

Statutory Liability

This cover is a type of protection that helps people or labour only businesses cover costs if they accidentally break certain laws or regulations.

Best For
  • Unintentional breaches protection
  • Legal costs
  • Fines and penalties

Business Vehicle Insurance

Protects vehicles used for work purposes. It covers accidents, damages, and injuries related to the vehicle while it’s being used for business and personal activities.

Best For
  • Repair costs
  • Third party damages
  • Injuries 

Loss of use

Coverage that helps when your vehicle is unusable due to an accident. It covers the cost of a temporary replacement vehicle, so you can still get around while your car is being repaired.


Best For
  • Temporary vehicle
  • Reimbursement expenses
  • Accident downtime

Tool Insurance

Safeguards your tools against unexpected events, like burglary or accidental damage, ensuring you won’t have to bear the financial burden of replacing them.

Best For
  • Burglary protection 
  • Accidental damage protection
  • Anywhere in New Zealand cover

Employment Disputes

This insurance in NZ covers legal costs and other expenses arising from disagreements between employees and their employers.

Best For
  • Mediation costs
  • Legal expenses
  • Settlement fees

How much does labour only insurance cost?

Labour insurance premiums are calculated on several different factors including:

  • Types of cover
  • Turnover
  • Location 
  • Claims History 

Labour only insurance in NZ typically costs between $50 to $100 per month

Who needs labour only insurance?

Labour only insurance is vital for:

  1. Labour-only contractors
  2. Tradespeople offering manual services
  3. Businesses hiring manual subcontractors
  4. Any business facing daily physical risks

While not mandatory by law, many clients and principal contractors require proof of insurance before engaging in a contract to mitigate potential liabilities.

Yes, you can tailor your insurance package based on the specific needs and risks associated with your business. Brokers like Gerrards can help you find the right fit.

How do I get a labour only insurance quote? 

We understand the unique needs of labour only insurance in New Zealand. Leveraging our extensive industry knowledge and partnerships, we provide comprehensive labour only insurance quotes from the top insurers in the country. Entrust us with your requirements, and we’ll ensure you receive the most competitive and tailored coverage options available.

To obtain a labour only insurance quote we may require you to provide some fundamental details about your business, such as:

  • The name of your business
  • The total number of employees
  • Predicted annual income
  • Years of experience in the industry

How do I get proof of labour only insurance?

You can usually get proof of labour only insurance same day when you purchase insurance through Gerrards.

Acquiring a labour only 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 project. We can typically provide a labour only insurance certificate within 48 hours. 

To obtain insurance coverage promptly, contact one of our labour only insurance brokers. 

What does labour only insurance not cover?

Intentional Damage

Any harm or damage intentionally caused by the insured or their employees won’t be covered. This includes acts of vandalism or deliberate neglect which result in loss or injury.

Contractual Liabilities

Specific liabilities that arise out of unique terms or conditions of a particular contract might not be covered. Always read your contract and understand the terms before engaging.

Faulty Workmanship

Insurance typically covers accidents, not shoddy work. So, if a job is done poorly and needs to be redone, these costs will likely come out of pocket. It won’t cover the cost of redoing work that was initially done incorrectly.

Other common questions about labour only insurance

Yes, typically your insurance will cover liabilities that arise from actions of your employees during their regular duties. However, this varies among different policies. It’s essential to clearly communicate with your insurer about who all are covered.

In most cases, insurers are flexible, allowing policyholders to make adjustments as their business needs change. This might, however, result in a change to the premium, either an increase or decrease.

Most Labour only insurance policies cover legal defense costs associated with covered claims, which can be invaluable given the high costs of legal representation.

Regular reviews ensure your coverage remains relevant. Annually is standard, but any time there’s a significant business change, it’s a good idea to revisit your policy.

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