Reviewed by licensed advisers at Smiths Insurance & KiwiSaver (FSP712931) · Updated 11 November 2026

Business Insurance NZ: What Cover Your Business Needs, by Type of Business

Business insurance in New Zealand is not one policy. It is a set of separate covers, and the ones you need depend on how you earn money: public liability if the public or client property is involved, professional indemnity if you give advice, material damage and business interruption if you have premises or stock, and vehicle cover if you drive for work. Almost none of it is required by law, but contracts and landlords often make it a condition.

In short

Pick covers by how you trade, not by a package name. The table below does that in one pass.
Most NZ businesses are small: 97% have fewer than 20 employees, so most buyers start with two or three covers, not ten.
Fines under the Health and Safety at Work Act cannot be insured. Cover that responds to other regulatory costs is a different product.
A certificate of currency is the proof a client or landlord asks for. Ask for the limit they want before you buy.
Business insurance covers the business itself. Cover for the people it relies on (a key person, a co-owner buy-out, a loan you guaranteed, your own income) is business protection, a separate set of life covers.

What business insurance does your type of business need?

Find the row that looks like you. Most businesses fit more than one.

Type of business	Covers to consider
Trades and construction	Public liability, contract works, tool insurance, statutory liability. See also the tradie package view, builders, electricians, plumbers and NZS 3910 insurance clauses.
Professional services (consultants, architects, engineers, IT, accountants, lawyers)	Professional indemnity, public liability, cyber. Contractors: see contractor insurance.
Shop, cafe and hospitality (cafes and restaurants, retail shops, salons)	Public liability, material damage (contents, stock, your fit-out), business interruption, statutory liability (regulatory costs under some Acts other than HSWA).
Online and home-based	Cyber, professional indemnity or product liability, home business cover. Your home policy usually excludes business use.
Businesses with staff	Statutory liability, plus key person cover for the people the business cannot run without.
Businesses with vehicles	Commercial vehicle insurance. Check whether tools carried in the vehicle are covered.

Insuring business assets

Business assets are what you own and use to earn: tools, computers, stock, your fit-out and vehicles. Business.govt.nz describes asset insurance as cover for theft and damage to these items. Home and contents policies usually exclude them once they are used for work, so they need their own cover: material damage, tool insurance or commercial vehicle cover. Ask whether each item is insured at replacement cost or market value. Opening a second site? Treat each address as its own risk, and send the lease wording before you sign, because landlords often set the liability limit.

The owner is a separate question. If the business stops when you are sick or die, see owner and shareholder protection and insurance for business owners. The detail sits in shareholder protection, buy-sell agreement funding, tax on business life cover and ACC for contractors and the self-employed.

Insurance by industry

Each guide covers the risks, the contract clauses and the exclusions for one kind of business.

Trades and construction

Professional services

Shops, food and services

By situation

Buying online or through a licensed adviser

Online works well for one simple cover on a straightforward business. A sole-trader designer buying public liability can do that in a few minutes, and there is nothing wrong with it.

An adviser earns their place in three situations:

A contract sets the cover. A main contractor, council or landlord wants a particular limit, wording or a named party on the policy. Getting that wrong shows up when you submit the certificate, or worse, at claim time.
You need several covers. Liability, property, interruption and vehicles interact. Gaps and double-ups hide between them.
After a claim or a decline. Insurers ask different questions of a business with a claims history. Presentation matters.

Our advisers work for Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). A Smiths adviser who holds the general insurance competence strand will phone you and talk through which covers to look at. Some business covers we refer to another licensed Financial Advice Provider, and we tell you who, and how they are paid, before your details go to that firm. That firm may charge fees. Smiths Insurance & KiwiSaver may receive a commission or referral payment if you buy. Owners' life, income and key person cover stays with Smiths. We do not place general business cover ourselves, and there is no instant online quote. There is no cost to talk it through.

How business insurance premiums are set

Insurers price on risk, so the same cover costs different businesses very different amounts. What you do, your turnover or sum insured, the limit, the excess and your claims history move the number most. Our business insurance cost guide sets out every driver.

We do not publish price examples because they mislead. The only reliable figure is a quote on your actual business.

Certificates of currency

A certificate of currency is a one-page insurer or broker document that confirms a policy is in force, the limit, the period and who is insured. Landlords, councils and main contractors ask for one before work or a lease starts. See certificate of currency for what to check on it.

Ask for the required limit before you buy. A sparky asked by a main contractor for a $5m public liability certificate cannot start the job on a $2m policy, and an upgrade mid-tender costs days.

What to have ready before you ask for quotes

Business structure and trading name, and how long you have operated.
Plain-language list of what you do, including the work you decline.
Last year's turnover and this year's estimate, plus wages if you have staff.
Contract or lease clauses that mention insurance. Send the wording, not a summary.
Address, construction and security details for each site, and a stock and equipment list.
Vehicles: registration, use, and who drives.
Claims, incidents and declines for the past five years. Tell the whole story, because leaving something out can put a claim at risk.
Current policy schedules, if you have them.

Frequently Asked Questions

Is business insurance compulsory in NZ?

Mostly no. There is no general legal requirement to hold liability or property insurance. In practice, a lease, a finance agreement or a contract often requires cover, so it becomes a condition of doing the work.

Does ACC replace public liability insurance?

No. In New Zealand, ACC bars most claims for compensatory damages for personal injury (Accident Compensation Act 2001, s 317). That is why NZ public liability claims are mostly property damage, plus legal costs and some exemplary damages. See public liability insurance.

Can I insure against a WorkSafe fine?

No. Section 29 of the Health and Safety at Work Act 2015 makes insurance against HSWA fines unlawful. Statutory liability cover is for other regulatory costs, and defence costs under some policies. See statutory liability insurance.

Do I need business insurance if I work from home?

Usually yes, if you hold client stock, meet clients, or give advice. Home and contents policies commonly exclude business activity, so check yours. See insurance when starting a business.

What is the difference between public liability and professional indemnity?

Public liability responds when you injure someone or damage their property. Professional indemnity responds when your advice or work causes a client financial loss. See professional indemnity insurance.

How do I compare business insurance policies?

Compare the same limit, excess and wording, not only the price. Check exclusions, the definition of your activities, and whether the insurer wants conditions met. A licensed adviser can help you check that.

References

Read the full insurance guides

Explore related pages: Life Insurance, Income Protection, Health Insurance, Trauma Insurance, Calculators.

Tell us how the business trades and a Smiths adviser will phone you to talk through which covers to look at. Check what cover you need. No cost to talk it through.