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Liability insurance
Liability consequential loss insurance
Liability consequential loss insurance protects against financial losses following business interruption that’s happened as a result of a liability insurance claim.
This cover is usually offered as an extension to public, statutory and employers’ liability insurance policies.
What is a consequential loss?
A consequential loss is an indirect loss due to an inability to use business property or equipment because of a natural disaster, legal proceedings or accident and it covers the revenue you would have earned, based on your financial records, had the disaster not occurred.
Property or fire insurance policies will not compensate the owner for loss of income and indirect losses due to their inability to use their property or equipment.
Examples of consequential loss include continued payment of salaries, fixed operational expenses, and other ongoing financial obligations.
What liability consequential loss covers
Liability consequential loss covers loss from interruption or interference with your business following:
- an occurrence under the General Liability section
- an event under the Statutory Liability section
- a claim under Employers Liability section
Cover is for up to 12 months from the time of interruption or interference, up to an amount of $100,000.
Liability consequential loss is sold as part of our business liability Insurance solutions.
Talk to one of our brokers about a liability package that meets the needs of your business.
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Claim example
A business was caught selling alcohol to minors in breach of the Sale and Supply of Alcohol Act 2012. Legal action was taken against the business owner. The statutory liability policy covered the owner’s defence costs and the fine imposed. As part of the penalty imposed the business was also required to refrain from selling alcohol for a defined period and as a result the business suffered a loss. The amount of this loss was covered by this consequential loss section of the policy.
Liability solutions
Public liability
Public and product liability insurance minimises the financial impact on a business should the unexpected happen
Product liability
Product liability insurance protects against claims of personal injury or property damage caused by a business
Directors and officers liability
Directors and officers insurance protects your executives and board from personal financial risk
Statutory liability
Statutory liability insurance can protect businesses against certain unintentional breaches of New Zealand law
Employers liability
An employers liability policy protects employers against claims brought by their employees who have sustained an injury where the ACC does not provide cover
Employment disputes
Employment disputes insurance protects employers against personal grievance claims brought by past or present employees
Crime insurance
Crime and fidelity insurance protect organisations from losses which could arise from dishonest or fraudulent acts committed by employees
Professional indemnity
Professional indemnity insurance is designed for professionals who provide advice
Trustees liability
Trustees liability insurance protects trustees from personal liability while carrying out duties performed for the trust