fbpx

Book an appointment here

Management liability insurance

Get the right cover from top insurance companies

Or call us on 0800 374 691

WE WORK WITH TRUSTED A-RATED INSURANCE COMPANIES

How much does management liability insurance cost?

The cost of management liability insurance in New Zealand typically averages between $50 – $100 per month. The common factors that impact the price are business size, structure and industry. 

What is the average cost of management liability insurance?

Businesses in New Zealand typically pay between $50 – $100 or around $750 annually for their management liability insurance.

Several factors impact the cost of management liability insurance. The type, size, structure, financial health and claims history of the business are the most common factors. 

Understanding management liability cost factors:

Here are three primary factors that play a significant role in deciding the cost of management liability insurance

Nature and Size of the Business

The kind of business you operate and its size can significantly affect the cost. For instance, a business that has higher risks, like construction, may need to pay a higher premium than a home-based online store. Similarly, a bigger company with more assets and more employees will generally have a higher liability risk than a smaller firm, and therefore, a higher insurance cost.

Claim History

Businesses that have had claims made against them in the past, especially frequent or severe ones, will likely face higher premiums. This is because insurers perceive them as higher risk. It’s similar to how drivers with past accidents might see higher car insurance premiums.

Coverage Limits and Deductibles

Higher coverage limits mean that the insurer might have to pay more if a claim is made. Naturally, this results in a higher premium. Similarly, if a business opts for a lower deductible, meaning they would pay less out-of-pocket in case of a claim, they’ll usually see a higher monthly or annual premium.

Management liability provides cost-effective protection for your business

Management liability insurance isn’t just another cost for businesses. It’s an investment in peace of mind. Here’s why:

Protects Against a Range of Risks

Management liability insurance typically covers various risks, including employment practices liabilities, directors and officers liabilities, and corporate legal liability. This comprehensive cover ensures that business owners are not caught off guard by legal or compensation claims.

Prevents Financial Catastrophes

A single lawsuit or claim can be enough to bankrupt a small or even medium-sized business. With management liability insurance, businesses have a safety net that can help manage these unexpected financial burdens.

Enhances Business Reputation

Customers, partners, and employees feel more secure knowing that a business has the necessary coverage to handle unexpected incidents. It sends a message of responsibility and preparedness.

.

It’s crucial to have management liability insurance if:

  • You have multiple employees.
  • Engaged in high-risk industries.
  • Operate in a litigious environment.
  • Business has significant assets.

How can you save on management liability insurance?

Saving on management liability while ensuring adequate protection for your business is achievable.

Remove sections of cover

If your business has robust risk management practices in place for certain areas, you might consider removing that particular section of cover. For instance, if you’ve invested heavily in human resource training and practices, thereby reducing the risk of employment disputes, you might feel confident enough to eliminate or reduce that specific coverage. By taking on the risk yourself for areas where you have strong preventive measures, you can decrease your premium. However, it’s crucial to assess and understand the potential risks of doing this.

Lower excess

The excess, also known as a deductible, is the amount a business agrees to pay out-of-pocket when a claim is made before the insurance kicks in. By agreeing to a lower excess, the insurer assumes a greater part of the risk. This means that while your premium might be higher, in the event of a claim, your out-of-pocket expenses will be reduced. It’s a trade-off between monthly costs and potential future payouts.

Lower Limits

Every insurance policy has a limit, which is the maximum amount the insurance company will pay out in the event of a claim. By choosing to lower these limits, you can often lower your premiums. However, it’s essential to be cautious with this approach. Ensure that the limits you set can adequately cover potential claims, or you might find yourself underinsured and facing significant financial stress in the event of a major claim.

Engage our management liability insurance brokers at Gerrards

Here at Gerrards, we know the ins and outs of management liability 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.

What our clients are saying: