Public Liability Insurance
Provides protection for Third Party Liability as a result of negligence in connection with your business. In simple terms you make a mistake that results in damage to someone else’s property and you are found to be legally liable to pay for the damages your Public Liability policy will provide you with protection. A commonly used example is an electrician that inadvertently burns down the factory he is working on. The Electrician's Public Liability policy would respond if he was proven negligent. These days the absolute minimum amount of Public Liability Insurance is NZD$2,000,000. NZ Financial Brokers can recommend the best policy for your business and can talk to you about the extensions you need to add to your policy for your specific occupation. We also offer worldwide cover for liability into USA / Canada, Product Insurance, Product Recall Insurance, Personal Liability Insurance, Employment Disputes Insurance and Airside Liability if your occupation works airside at at any airport in New Zealand.
Professional Indemnity Insurance
If you provide advice and a third party suffers a financial loss as a result of your incorrect advice, error or omission, duty of care or failure to do your professional duty then they can sue you for that financial loss. Professional Indemnity Insurance will provide you with cover for all the legal defense costs in defending any action and if you are subsequently found to have breached your duty of care the policy will then respond by paying any costs / financial loss to the aggrieved party. Most lawyers, solicitors, accountants, insurance brokers, property managers, project managers, IT contractors and any other professionals will have a requirement to have professional indemnity insurance.
Directors & Officers Insurance
Also known as Management Liability Insurance provides cover for your personal liability arising out of your capacity as a director, employee, officer, board member of the company you are acting for. There have been a number of high profile cases where the director or board members have been held personally liable for the debt of the companies they have acted for regardless of fault. The Companies Act is clear that you are severably liable. Ignorance is not a defense. Being a Director or Board Member brings with it huge risk and your personal liability should be protected by a Directors and Officers Liability Policy (Management Liability). The policy will provide cover for legal defense costs and any settlements should you be found legally liable. A Trustees Liability Policy is essentially the same but designed for Trusts as opposed to companies.
Provides cover for Breaches of Certain Government Statutory Acts and will pay the fines * and legal defence costs for prosecutions excluding The Health & Safety in Employment Act where it will only provide for legal defence costs. It is legislated that fines under the Health & Safety In Employment Act cannot be insured against however the legal costs and any reparation will be covered if a prosecution is successful. Fines can be be significant and can be up to $500,000
Important Note: The above is general in nature and not intended as specific advice. For full terms and conditions the insurers policy wording should always be referred to or talk to one of our qualified brokers.