Most business owners don’t “forget” insurance. They just don’t know what they’re meant to cover until something ugly happens: a customer injury, a contract dispute, a theft, a flood, a cyber incident, or a claim letter.
The goal isn’t to buy everything. It’s to buy the right few covers, sized properly, with exclusions that are actually comprehensible. Here’s how to figure it out without turning your brain into a spreadsheet.
Step 1: Build a quick risk map (this kills the guessing)
Before you look at business continuity insurance, answer these five questions:
Do you interact with the public in person or on-site?
If yes, you’re in public liability territory.
Do clients rely on your advice, designs, recommendations, or professional judgment?
If yes, you’ll likely need professional indemnity.
Could you keep operating if your tools, stock, or premises were damaged tomorrow?
If not, you’re looking at property/assets cover plus business interruption.
Do you employ staff or use contractors?
If yes, think about employers’ liability and get clear on how it works alongside ACC.
Do you store customer data, take payments online, or run your business through systems you can’t afford to lose for a week?
If yes, add cyber insurance to the shortlist.
The “core four” most NZ businesses start with:
Public liability insurance
Public liability is about claims from people who are not employed by you. If a customer, visitor, or member of the public is injured or their property is damaged because of your business, this is the policy that usually responds.
You’ll care about this if you:
- Have customers on your premises
- Work at client sites (tradies, installers, cleaners, photographers, events)
- Set up equipment in public spaces
- Run pop-ups, markets, workshops, or anything with foot traffic
This cover isn’t only about compensation. Legal defence costs can be a real menace, because even a “small” incident can turn into a long, expensive argument. Especially in the case of startups, small business insurance becomes a necessity.
Professional indemnity insurance
If your business sells knowledge, judgment, or expertise, professional indemnity becomes a serious consideration. It’s designed for claims where a client says your mistake, oversight, or advice caused them financial loss.
This often applies to:
- Consultants and contractors
- Designers and engineers
- Accountants and bookkeepers
- IT providers
- Agencies doing marketing, ads, strategy, or implementation work
- Financial and legal professionals (and in some cases, industry rules make it effectively non-negotiable)
If your work output can be blamed for someone else losing money, you want protection that is built specifically for that type of allegation.
Property and assets cover
This is your physical world: tools, equipment, stock, furniture, computers, fit-out, sometimes the building, depending on your setup.
This becomes essential if replacing what you use to trade would hurt. It’s also the cover that punishes lazy inventories. If you can’t list what you own and what it would cost to replace, you’re basically guessing your safety net size.
Business interruption insurance
This is the one people skip until they’re forced to stop operating.
Business interruption is about protecting your income and keeping the lights on while you recover from a covered event. It can help with lost revenue and ongoing costs like rent, wages, and essential operating expenses during downtime.
If a flood, fire, equipment failure, or major incident shuts you down for weeks, this cover stops a temporary disruption from turning into permanent closure.
What NZ business owners get wrong about “mandatory” cover
New Zealand has a unique safety net with ACC, and it’s important. But it doesn’t mean you can ignore everything else.
ACC helps with certain work-related injuries and rehabilitation support, and employers pay levies. It’s part of the environment you operate in. What it isn’t: a full replacement for liability cover, legal defence cover, or the financial reality of your business being disrupted.
If you have employees (or you’re responsible for people on-site), employers’ liability is still worth serious attention. It’s commonly used for situations where ACC doesn’t respond the way you expect, and where you may still face costs, allegations, or legal defence needs.
Match cover to your business type
Trades and construction
Typical exposures:
- Accidental damage to client property
- Injuries involving members of the public
- Tools stolen from vehicles or sites
- Staff injuries and safety disputes
- Jobs delayed by damage to equipment or premises
Common shortlist: Public liability, tools/property, business interruption, employers’ liability.
Consultants, agencies, and professional services
Typical exposures:
- Clients claiming your advice caused loss
- Project errors, missed requirements, disputes over scope
- Laptops and gear are being stolen or damaged
- Hacked accounts, leaked data, ransomware chaos
Common shortlist: Professional indemnity, public liability (depending on client interaction), equipment cover, cyber.
Retail, hospitality, and customer-facing venues
Typical exposures:
- Slips, trips, and customer injury claims
- Stock loss, spoilage, theft
- Shutdown after a major incident (damage, power events, equipment failure)
Common shortlist: Public liability, property/stock, business interruption.
Transport, couriers, and mobile services
Typical exposures:
- Vehicle damage and third-party liability
- Goods and equipment loss
- Disruption when vehicles are off the road
Common shortlist: Commercial vehicle cover, liability, and sometimes interruption, depending on how fragile your cash flow is.
The 5 claim-denial mistakes to avoid
If you want fewer surprises, don’t do these:
- Buying based on price, not exclusions: If the policy excludes the thing you’re most likely to face, it’s not cheap. It’s useless.
- Understating turnover, staffing, or what you actually do: If your disclosed business activities don’t match your real operations, you’re creating claim risk.
- Not listing key assets properly: “My equipment is probably worth around…” is not an inventory. It’s a prayer.
- Ignoring contract requirements: Many contracts specify minimum levels for liability or indemnity. If you don’t meet them, you can be in breach at the worst possible time.
- Choosing an excess you can’t pay quickly: A high excess can lower premiums, sure. But if you can’t pay it next week, it’s not a strategy. It’s self-sabotage.
What to do if a claim is declined?
If a claim is rejected and you genuinely think it’s wrong:
- Ask for the decision and reasoning in writing
- Challenge it clearly with reference to the event and your policy wording
- Escalate through the insurer’s complaint process
- If needed, take it to an independent dispute resolution scheme (many providers are part of one)
Don’t just accept a “no” as the final word if you believe the policy should respond.
Frequently Asked Questions
Q. Do I need business insurance NZ if I work from home?
Ans : Possibly, yes. Home policies don’t always cover business equipment, stock, or business-related liability. If you earn income through work done at home or you host clients, it’s worth checking properly.
Q. Is public liability enough on its own?
Ans : Not for most businesses. It doesn’t cover advice-related disputes, cyber incidents, your own tools/stock, or the financial damage of being shut down.
Q. How are business insurance premiums calculated?
Ans : Common factors include your industry, turnover, employee count, claims history, the size of premises, and the cover limits you choose.
Q. How do I know I’m not underinsured?
Ans : If replacing your tools, stock, or ability to trade would take you out, you’re underinsured. If your liability limit wouldn’t survive a serious claim plus legal defence, you’re underinsured. If your interruption cover doesn’t match your real downtime risk, you’re underinsured.
Final thought
Choose NZ business insurance like you choose safety rails on a staircase: you only notice them when you’d otherwise fall.
Start with the risks you can’t afford to self-fund. Cover the exposures that can trigger legal costs. Size limits for worst plausible scenarios, not best-case moods. And read the exclusions like your business depends on it, because it does.
If you’re not sure where your risks sit, a short review can usually spot gaps quickly. Talk to NZ Insurances to sense-check your cover before a claim does it for you.
