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Statutory Liability Insurance

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How much does statutory liability cost?

The cost of statutory liability insurance in New Zealand typically averages between $15 – $30 per month. This cost is determined by various factors, including your industry, business size, and specific risk factors your business.

What is the average cost of statutory liability insurance? 

On average, statutory liability insurance costs between $15 and $30 per month, equating to around $200 per year.

This is a broad average and actual costs can vary significantly based on the specifics of the business involved. It’s important to note that businesses in higher risk industries such as manufacturing or financial services may face higher premiums due to the greater chance of potential legal issues.

Understanding statutory liability insurance cost factors

The cost of statutory liability insurance is influenced by several key factors. We’ll delve into three of the most impactful:

Is your industry at higher risk of statutory liability insurance claims?

Some industries inherently carry higher risks for statutory liability claims. For example, a manufacturing company is more likely to face legal issues related to environmental regulations than a retail business. Insurers will take into account the industry your business is in when determining your insurance costs.

What is the impact of business size and scale on statutory liability?

Larger businesses with more employees or extensive operations can expect higher insurance premiums. This is due to the increased probability of statutory breaches as business operations scale. The complexity of operations can also affect the cost, with more complex businesses often requiring more coverage, resulting in higher premiums.

How does your policy limit alter your commercial statutory liability cost?

The level of coverage you choose directly affects the cost of your statutory liability insurance. A higher limit means the insurer could potentially have to pay out more in the event of a claim, so this will increase your premiums. Alternatively, selecting a lower limit can reduce your premiums, but it also means you’ll have less protection if a claim is made against your business.

Statutory Liability Provides Cost-Effective Protection for Your Business

Statutory liability insurance is an investment in the stability and longevity of your business. Here’s how it helps:

Statutory liability provides legal fee coverage

Statutory liability insurance can cover the cost of legal fees associated with defending against claims or legal action related to statutory breaches. Without insurance, these costs can quickly escalate and put a significant financial strain on businesses.

Mitigation of Financial Loss 

If a business is found guilty of statutory breaches, they may face hefty fines or reparations. Statutory liability insurance can help mitigate these financial losses, ensuring your business can continue operating despite any penalties.

You are granted peace of mind with statutory liability insurance

The risk of statutory breaches can be a significant source of stress for business owners. With statutory liability insurance, business owners can focus on running their business, safe in the knowledge that they’re protected against potential legal issues.

It’s crucial to have statutory liability coverage if your business: 

  • Is in a high risk industry
  • Operations are complex
  • Has a history of statutory breaches
  • Has multiple employees or contractors

How can you save money on statutory liability insurance?

There are ways to reduce the cost of your statutory liability insurance without compromising your coverage. Here are three strategies:

Understand your statutory liability insurance excess

Excess is a significant aspect of any insurance policy, including statutory liability insurance. In simple terms, excess is the amount you agree to pay out of your pocket before the insurance company steps in to cover the rest of the claim. For example, if you have a $500 excess and a claim worth $2000, you will pay the first $500 and your insurance company will pay the remaining $1500.

To save money on statutory liability insurance, you can choose a policy with a higher excess. This means you’re taking on more financial risk yourself, but it also means your insurance premium (the money you pay regularly to keep your insurance policy active) will be lower. However, be cautious and make sure the excess amount is something you can comfortably afford in case you need to make a claim.

Bundle your statutory liability insurance policy

Often, insurers will offer discounts for businesses that hold multiple policies with them. Consider bundling your statutory liability insurance with other business insurance policies, such as professional indemnity or public liability insurance, to benefit from potential savings.

Use an Insurance Broker 

Insurance brokers like us at Gerrards have extensive knowledge of the insurance market and can help find you the best coverage at competitive prices on your statutory liability insurance. We can negotiate on your behalf with insurance companies and work to get you the most favourable terms. This can lead to significant cost savings without sacrificing the extent and quality of your coverage.

Statutory liability risk management

By having a robust risk management system in place, you can show insurers that you’re actively working to prevent statutory breaches. This can lead to lower premiums as you’re reducing the likelihood of claims. Regularly reviewing and updating your risk management strategies can help ensure continued savings.

Top professions that need statutory liability

In New Zealand, Statutory liability insurance can provide comprehensive and cost effective protection for many professions.

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