$5 Million Public Liability Insurance
$5M is the de facto industry standard for commercial trade contractors in New Zealand. It is specified as the minimum in most commercial construction contracts, many government procurement processes, and Auckland Transport, Waka Kotahi and other infrastructure body requirements. For hospitality venues, $5M is increasingly recommended by insurers given the potential severity of food poisoning and allergen claims.
Typical annual cost: $800 – $2,500/year
Best for
- ✓Commercial trade contractors (builders, electricians, plumbers)
- ✓Businesses tendering for government or council contracts
- ✓Contractors working as subcontractors to principal contractors
- ✓Medium-to-large hospitality and events businesses
- ✓Any business with a specific $5M contractual requirement
Consider higher cover if…
- →Very low-risk sole traders (overinsured — $2M may suffice)
- →Home-based businesses with no client site visits
How $5M Cover Works in Practice
A builder's subcontractor causes structural damage to an adjacent building during demolition work.
$5M covers complex structural repairs and consequential losses potentially reaching $2–4M.
A caterer's food causes a serious allergic reaction at a large corporate event, injuring multiple guests.
$5M covers multiple claims, medical costs, and legal fees across all affected parties.
Industries That Typically Need $5M Cover
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