Understanding common types of business insurance

Insurance | May 2022


There are many types of business liability insurance, which help cover the costs of liability claims made against your business.

  • Public liability

This is a critical form of business insurance, and for good reason: if any person not employed by you has their property damaged and the fault lies with your business, this will cover you for compensation claims, as well as repair costs and legal fees set out in the policy.

Also, if a business is looking for a supplier or contractor for a particular job, those who have public liability insurance (also known as ‘General’ or ‘Broadform’ liability) will appear far more attractive to them, which is something to keep in mind.

  • Statutory liability

If you accidentally breach New Zealand law, this type of insurance can cover the costs of certain fines or legal defence fees.

  • Employers’ liability

If any of your employees is harmed or injured in connection with your business, your business may need to provide cover for any incidents that aren’t covered by the Accident Compensation Corporation (ACC).

Business vehicle

This is fairly straightforward: that is, it covers your business vehicles against accidental damage or liability for damage to other vehicles, as well as other legal defence and liability costs.

Business assets

This covers you against any accidental damage, loss or theft of your equipment, your stock or inventory and any buildings that you may own.

Business interruption

This is useful in the event you suffer loss or damage to an area of your business due to an unforeseen circumstance that prevents you from operating as per usual that is covered by your policy.

It can cover wage or salary payments, loss or reduction in profit, additional costs necessarily incurred, the costs of preparing your claim, as well as loss or damage to property covered by your Business Assets policy.

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Disclaimer: These advertisements do not offer specific advice and you are responsible for your own decisions about financial planning, insurance and risk. All information presented is of a general nature, merely for informational purposes and is not intended as a substitute for professional and/or financial advice. Should you decide to act upon any of the information presented, you do so at your own risk.

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