Assessing Your Coverage Needs
Choosing the right amount of public liability cover is one of the most important decisions you'll make. Too little coverage leaves you exposed to financial risk; too much may mean unnecessary expense.
Key Factors to Consider
- Industry Risk: High-contact industries like hospitality or construction require more cover than office-based businesses.
- Business Size: Larger operations with more employees and customer interactions need higher limits.
- Type of Work: Physical work, especially at heights or with machinery, increases risk.
- Client Requirements: Many contracts require specific minimum coverage levels.
- Regulatory Requirements: Some industries have mandatory minimums under NZ law.
Common Coverage Levels
| Industry/Business Type | Typical Coverage |
|---|---|
| Retail & Office | $1M - $2M |
| Hospitality & Food Service | $2M - $5M |
| Trade & Contractors | $5M - $10M |
| Construction & Heavy Industry | $10M - $20M |
| Schools & Large Venues | $5M - $20M |
The Financial Impact of Claims
A serious injury claim could easily exceed $500,000 in medical costs, rehabilitation, and ongoing care. Major structural damage could run into millions. Choosing inadequate cover can be catastrophic.
Recommendations by Industry
Different industries face different risk profiles. Trade contractors, for example, typically require $5M minimum cover due to the physical nature of their work and industry standards. Schools and education providers need high coverage due to duty of care obligations to young people.
Next Steps
Use our quote comparison tool to see how different coverage levels affect your premium. We'll help you find the right balance between protection and cost.