Liability insurance covers three main areas:
Public Liability, Statutory Liability and Employer's 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
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 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