Things You Need To Know About Business Liability Insurance in NZ

Business liability insurance protects a business enterprise and its owner in the event of a formal litigation or another third-party claim. Insurance coverage includes all financial liabilities suffered along with all expenses associated with the enterprise’s legal defense. Broadly, business liability insurance can be classified into 3 types: General liability insurance, statutory liability insurance, and employers liability insurance.

Breaking Down Business Liability Insurance in NZ

When you are a small business owner, you are running your business either in a partnership or as a sole proprietor. In such as scenario, a business related litigation can often put your personal finances at a major risk. Even under an LLC, Limited Liability Corporation, you may be faced with personal risk. Business liability insurance in NZ offers you with better and greater protection than provided by your legal structure.

Types of business liability covers:

General liability cover: In this, you are covered in case your business is legally needed to recompense for property damage or personal injury.

Employers liability cover: In this, you are covered in case your business experiences loss owing to a personal injury claim raised by an employee.

Statutory liability cover: In this, you are covered in case your business experiences loss arising from a statutory liability claim.

Fundamental Benefits You Get With Business Liability Insurance in NZ

Landlord’s liability cover

Your business has cover if it is legally liable to pay for property damage or personal injury associated with any property owned legally, but not in use by you.

Forest and rural fires

Under the Forest and Rural Fires Act, 1977, your business has cover for up to $250,000 safeguarding its legal liability.

Tenant’s liability cover

Your business has cover if it is legally liable to pay for property damage to the premises it rents or leases.

Penal and exemplary damages

Your business has the cover of up to $1,000,000 in case a person is granted penal or exemplary damages resulting from an injury associated with your business. This is valid only for general liability.

Defence cost advancement cover

In this, you are offered advance covered defense costs in connection with employers and statutory liability.

Thus, covering your business under business liability insurance is exceedingly significant for all companies in New Zealand, regardless of their size. If there is any chance that your business has the potential to cause a damage, loss or injury to any property or person, it is imperative that you get in touch with a reliable insurance broker in Wellington and choose the appropriate insurance cover for your business.

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