Frequently Asked Questions
Everything you need to know about business liability insurance
What is business liability insurance?
Business liability insurance protects your company from financial loss if you're legally liable for damage to property, bodily injury to others, or professional mistakes. It covers legal costs, compensation payments, and related expenses.
How much does business liability insurance cost?
Costs vary from $85-$200 per month depending on your industry, coverage amount, and risk profile. Public liability typically costs $85-$150/month, while professional indemnity ranges from $85-$200/month. Get a personalized quote to see exact pricing for your business.
Do I really need business liability insurance?
While not legally required for most businesses, liability insurance is essential protection. Without it, a single claim could bankrupt your business. Many clients and contracts require proof of insurance before working with you. It's a small cost for major financial protection.
What's the difference between public liability and professional indemnity?
Public liability covers physical damage or injury (e.g., a client trips at your premises). Professional indemnity covers financial loss from your professional advice or services (e.g., an accounting error that costs a client money). Many businesses need both types of cover.
How much coverage do I need?
Most small businesses start with $1-2 million in coverage. High-risk industries or large contracts may need $5-20 million. Consider your industry risks, contract requirements, and potential claim sizes. Our advisors can help determine the right amount for your business.
What's not covered by liability insurance?
Standard exclusions include intentional wrongdoing, criminal acts, damage to your own property, employee injuries (covered by ACC), and cyber incidents (needs separate cyber insurance). Always read your policy document for specific exclusions.
How do I make a claim?
Contact your insurer immediately when an incident occurs. Document everything: photos, witness statements, correspondence. Your insurer will assign a claims manager to guide you through the process. Legal defense costs are typically covered even if the claim is ultimately unsuccessful.
Can I cancel my policy anytime?
Most policies can be cancelled with 30 days notice. You'll typically receive a pro-rata refund for unused cover. However, professional indemnity is "claims made" which means you need continuous cover or retroactive protection for past work. Consult your insurer before cancelling.
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