Published: 27 September 2023
Liability Insurance: Your Shield Against Unexpected Claims
In 2022 alone, over $149 million in liability insurance claims were paid out in New Zealand*. That's a significant amount, and it highlights why it’s important to have liability insurance to ensure you have the right support if and when you need it. Rothbury offers a variety of liability insurance solutions and we have shared some helpful insights and tips below.
- Public Liability Insurance: Employees, or the products you sell or manufacture have accidentally caused harm to someone else or their property. The third party could take legal action against the business to cover the cost of the damages. Repair or replacement costs for the damaged property and legal defence fees can be covered under Public Liability Insurance.
- Fidelity Insurance: An employee has stolen funds from the company’s bank account despite adequate controls being in place to help prevent employee theft. Under Fidelity Insurance, the policy can reimburse the business for losses incurred as a result of employee theft.
- Directors and Officers Liability Insurance: As a business owner or director, you can be held personally liable if you fail to meet the requirements of the Companies Act 1993 (such as failing to act in the best interests of the company) and other statutory requirements. The legal costs to defend investigations by the regulatory body can be significant, and legal defence expenses can be covered under Directors and Officers Liability Insurance.
Talk to your broker about the right liability insurance for you.
Liability insurance can help reduce the financial impact following a liability insurance claim. Depending on your policy, it can cover:
- Costs to investigate and defend allegations
- Legal defence fees
- Repair or replacement costs for damaged property or possessions
- Reimbursement of financial loss caused by employee dishonesty or fraudulent acts
- Legal and settlement costs arising from a wrongful act claim against the business
- Compensation payments for injuries or damage caused by your products or services
In some cases, liability insurance is not just a good idea, but a requirement. It is usually mandatory to have at least Public Liability Insurance before entering into contracts or visiting worksites.
Management Liability is an all-in-one insurance solution, which combines multiple liability solutions into one comprehensive policy. It can help ensure you are protected against a variety of risks that may arise from both the day-to-day management and operation of your company.
A Management Liability insurance solution may include:
- Cyber Liability
- Directors and Officers Liability
- Fidelity
- Professional Indemnity
- Public Liability
- Statutory Liability
Every business is unique, so it’s important to understand your specific risks and ensure you have the right liability insurance in place. Talk to your broker, and they’ll guide you through the process and recommend a tailored liability insurance solution.
*Market data, Insurance Council of New Zealand: https://www.icnz.org.nz/media-resources/market-data