Liability Insurance

As a business owner, there are various exposures that could lead you to being liable for damages to a third party.

Have any questions about how this can apply to you?

Liability insurance covers three main areas:

Public LiabilityStatutory Liability and Employer's Liability

Public Liability

Public Liability provides protections where your business is found to be legally liable for damages to Third Party property as a result of negligence.


If a Public Liability claim is successful, it will cover all legal costs and compensation payments awarded to the Third Party.

Examples of what your Public Liability insurance may cover:


  • A Builder drops a tool which causes damage to the tiles in someone’s home

  • A Plumber installs a shower incorrectly which leads to flooding in someone’s home

Statutory Liability

The most common acts where there is a breach are:

  • The Health and Safety in Employment Act

  • Resource Management act

  • Fair Trading Act

  • Consumer Guarantees Act


If your business is faced with a breach, the cost of defending a claim is often far greater than the fine itself. Statutory Liability insurance covers the defence costs associated with defending a claim as well as any reparations (excluding the health and safety in employment act where it is illegal to insure fines).

Examples of what your Statutory Liability policy may cover:


  • An employee who sustains injury due to an unsafe workplace, the company could be fined under the Health and Safety in Employment Act

  • An employee who dumps waste that ends up in a nearby Stream, the company could be fined under the Resource Management Act

Employer's Liability

Employer's Liability insurance provides protection against bodily injury to employees that falls outside of ACC criteria.

Examples of what your Employer's Liability insurance may cover:


  • An employee who has Repetitive Strain Injury

  • A chemical factory worker who is diagnosed with a disease resulting from his workplace environment

  • An employee who claims for workplace stress due to an unhealthy work environment