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Liability insurance

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Liability insurance for business

Business liability insurance covers you for legal costs and certain fines if you accidentally injure or damage other people or their property in the day-to-day operation of your business. Any sized business can be on the receiving end a claim made by a third party or negligence or omission from a staff member. Monitoring your liability risks in a constantly changing environment is a difficult, time-consuming and demanding task. Fortunately, our brokers are here to help you assess and manage these kinds of risk.

What is liability insurance?

Liability insurance covers two key financial risks. One is the legal cost of defending a claim. The second is the compensation that you may be directed to pay the injured or wronged party, plus their legal costs, if a claim against you is upheld.

Though liability insurance is optional in most cases, it is strongly recommended for businesses in all industries, as the likelihood of being sued for negligence is unpredictable and potentially very costly. In some industries, however, liability or professional indemnity insurance is mandatory before you can legally operate.

WE OFFER FIVE MAIN FORMS OF BUSINESS LIABILITY INSURANCE
Public liability

It makes good business sense to always act in a professional way without any negligence. However, mistakes do happen and that’s why businesses need public liability insurance.

public liability insurance policy covers your business if someone is killed or injured in some way by your business, or if you damage third party property when carrying out work or they suffer economic loss resulting from your negligence. It can protect a person, a business, an event or a contractor for costs from legal action if they are found liable. Public liability insurance won’t cover you if you are involved in known hazardous activities or criminal actions. Public liability covers you for negligence, but only if your business acts responsibility and in a professional way.

Statutory liability

Statutory liability insurance covers legal defence costs and certain fines if you accidentally breach legislation. It protects you, your business and your employees, including directors, trustees and managers, against certain unintentional breaches of New Zealand Acts of parliament resulting in prosecution. There is no cover for fines relating to the Health and Safety and Employment Act (except for reparations), where indemnification is prohibited by law. However, cover for defence costs are included.

Professional indemnity

Professional indemnity insurance - It protects from legal action if someone suffers a loss after following your professional advice or as a result of your service. This can happen to the most fastidious and capable of people. Even if you’re not at fault, you may have to spend significant amounts on legal fees to prove the liability isn’t yours. Depending on the insurance product you choose, our professional indemnity might include cover for liability due to:

  • not achieving the results of a contract
  • mistakes when providing a service
  • giving poor advice

We also provide cover for:

  • representation at proceedings held by registration boards or professional bodies. There are also specific types of professional indemnity insurances for certain professionals.

Ask our brokers for information about liability cover for your profession or industry

Management liability

As a company director, you owe duties under both statute and common law and can be held personally liable not just for your own mistakes but also for the failings of people on whom you relied. If a manager or director conducts illegal or unethical practices that cause losses to individuals or businesses, management liability covers your assets and the business.

Management liability insurance has many levels of cover, such as:

Talk to our insurance brokers about management liability options that are most suited to your business.

Product liability

Product Liability Insurance covers you for damage or injury that you might cause to another business or person through your product or service.

If you sell, supply or deliver goods, even in the form of a repair or service, you may be liable if your products cause:

  • injury or death
  • property damage
  • nervous shock, such as emotional distress or a recognised psychiatric illness

Typically, product liability covers:

  • compensation payments for third party injury or even death
  • repair or replacement costs, for damaged property or possessions
  • medical treatment or an ambulance call out
  • legal expenses, while you’re defending any of these claims.

We can also provide cover for product contamination and product recall. Our Foodsure Liability Insurance is specifically for food manufacturers.

Custom insurance solutions for your business

At Crombie Lockwood, we work with corporates and small-medium businesses to develop tailored liability solutions that fit the unique requirements of each business. 

Through working closely with our clients, Crombie Lockwood has developed two cost-effective business insurance packages to support your primary liability risks.

In addition we offer a range of specialist liability solutions as separate products and as extensions to other liability policies.

Whatever you need we have the brokers which can find the right cover for you and in the event of a claim, they'll work on your behalf to get a fair resolution.

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