There are many different types of business insurance in New Zealand that you need to be aware of, especially if you want to protect your company in the event of unfortunate incidents. One of them is general liability insurance - a product that will cover you for legal liability in a number of different situations.
As with any type of business insurance, it's essential that you weigh up the advantages of the cover before taking out a policy. You should also choose a provider that will offer general liability insurance that's tailored to your needs, rather than one that takes a one-size-fits-all approach.
If you're not familiar with what general liability insurance covers, then it pays to find out a little more about what the cover entails.
This type of business insurance in New Zealand will provide protection when you, your employees or any of the products you sell lead to damage or personal injury to a third party.
For example, if you're responsible for causing damage to a client's property during a delivery, or you've dropped a tool that's created a dent, then this type of policy will cover the financial cost.
Although it's not always possible to prevent these incidents from occurring, knowing that you have the necessary cover in place will offer some peace of mind. Dealing with the outcome of situations such as these can be costly, but with general liability insurance, you can rest assured that some of the financial cost will be met.
What types of business can benefit from general liability insurance?
One of the main advantages of general liability insurance is that it's suitable for businesses across a wide range of sectors. These include, but are not limited to:
- Industrial and manufacturing
- Food and beverage
- Transport operators
- Construction
- Information technology
- Courier services
- Electrical equipment
- Contractors
- Medical equipment
- Retailers
The specifics of your legal liability cover must be moulded to meet the needs of your specific sector. A good broker can advise on this and ensure there are no shortfalls in your policy and most importantly make sure it will meet your expectations at claims time.
What won't my policy pay out for?
Although general liability insurance is a diverse type of cover to have, it nevertheless has some limitations. You will need to be aware of these when taking out business insurance in New Zealand, and your broker can assist you with this.
For example, your cover won't provide protection should any of your workers suffer an injury while they are in their place of employment. If you do need cover in this area, then instead take a look at employer's liability insurance.
You also need to be aware that general liability insurance will not cover any professional mistakes that your employees make. It might be the case that one of your salespeople has offered advice to a customer that proved to be incorrect - general liability insurance isn't designed to cover your business in this situation. There are, however, specific professional indemnity insurance policies that will provide this type of protection.
Another area that business insurance companies in New Zealand are keen to differentiate is the deliberate actions of employees. So, if a worker intentionally causes damage to a client's property during a delivery, then the policy will not pay out.
The most common general liability insurance claims
Rothbury has experience in dealing with a variety of different legal liability cases, but there are some that are more common than others.
We often find ourselves with cases where an employee has dropped a tool creating a dent on a client's property. Rectifying the damage can be costly to a business, which is why it's essential to have this type of insurance in place.
It's also not uncommon for us to deal with cases where damage to client's property has arisen during a delivery. Whether it's a vehicle or the commercial or residential property that's been affected, having the right policy should mean that you can recoup the cost.
Making an application for cover
General liability insurance varies from provider to provider, which is why you need to take a good look at what's available on the market. We recommend turning to a good broker and company that has extensive involvement and a sound knowledge of business insurance in New Zealand.
Rothbury has more than 60 years' experience in the business, so you know that you're dealing with a broker that understands your specific requirements.
The next step should be to contact us and find out more about the different types of legal liability cover we offer, before deciding which is most suited to your organisation.
