Public Liability insurance (also includes Products Liability insurance) covers you for accidentally injuring a person or damaging someone’s property, while you’re doing business. It’s also sometimes called General or Broadform Liability and it’s important protection for many types of Kiwi business, big and small. In fact, for some industries and workplaces Public Liability insurance is even mandatory.
- Legal representation and defence costs
- Investigation costs
- Compensation for personal injury or death
- Damages, repair or replacement of other people's property
Commercial Risk Specialist, Janice Macgee, answers your questions
Q. Who should have Public Liability cover?
Janice says: Most (if not all) businesses will need Public Liability cover. It’s a must for anyone who manufactures or supplies products, is a tenant, owns a commercial building, goes into other people’s premises to conduct business, or has people come onto their premises.
Q. Why do I need cover for this – doesn’t ACC cover accidents in NZ?
Janice says: Quite simply, accidents happen. And you’re responsible for any damage that you or your employees cause to other people’s property, even accidentally. New Zealand ACC does mean you can’t be sued for loss of earnings or medical expenses when you or one of your employees accidentally injures someone, but you can still be sued for loss of enjoyment of life, pain and suffering, and stress.
Q. How much cover should I have?
Janice says: Generally we recommend public liability cover of at least $2,000,000 unless there is a contractual requirement for you to hold a higher amount. Check any contracts you have, including your lease agreements, to see if they specify a limit, or send them through to us to review for you.
Q. How is the premium set?
Janice says: The main factors affecting your public liability premium are your occupation or industry, your business turnover, the number of employees you have, and any previous public or product liability claims.
Think you might need Public Liability insurance?
From our clients
“Our company is a Main Contractor in the commercial construction industry, so we must be confident of the best advice and risk management cover available to protect our business. Meridian General Insurance Brokers deliver this expertise and so have been our preferred Commerical Broker for over a decade. The team at Meridian General deliver excellent service and knowledgeable up-to-date advice in the ever-changing world of Insurances, particularly Lisa, our Commercial Risk Analyst.”Jan Peryer, Company Manager, Peryer Construction Wgtn Ltd