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

Retail Shop Insurance NZ: Liability, Stock and Interruption Cover

Retail shop insurance in NZ is public liability for customers and the public, a property policy for stock, fit-out and contents, and business interruption for the income lost after insured damage. Landlords often ask for proof of liability cover in the lease. Statutory liability and cyber cover are worth raising once you have staff or take card and online payments.

In short

Public liability pays when a customer is hurt or their property is damaged because of your shop. It does not pay for your own stock.
Stock, fit-out and contents sit under a property policy. Business interruption is added to it and pays only after insured damage.
Check your lease first. It often says who insures the glass and the fit-out, and what liability limit the landlord wants.

What landlords and centres ask shops for

A certificate showing public liability and the limit
Who insures the shopfront glass
Who insures the fit-out
What happens to rent if the building is damaged

A customer trips or a rail tips

Most injury claims go through ACC, so property damage and legal costs are what remain.

A product goes wrong

The products extension matters more if you import or label your own brand.

Shut after a fire or flood

Rent and wages continue while the shop is closed for repairs.

Till or online store down

An outage stops sales the way a fire does, and standard wording usually leaves it out.

Work out what to raise

Tick what applies to you

I am the tenant and the lease covers glass and fit-out
The lease decides who insures what.
Covers to raise: Premises, stock and interruption
Stock levels rise a lot before Christmas
Ask how a seasonal peak is handled.
Covers to raise: Premises, stock and interruption
We import or sell our own brand
The products extension is worth raising.
Covers to raise: Public liability
We also sell through an online store
Covers to raise: Cyber, Premises, stock and interruption
We take card payments
Covers to raise: Cyber
We have staff
Covers to raise: Statutory liability
We offer styling or alterations
Covers to raise: Professional indemnity
A centre or landlord has asked for a certificate
Covers to raise: Public liability

What these covers do not pay

Shoplifting and staff theft, unless the wording specifically includes them.
Stock that sells slowly or goes out of fashion.
A product that is simply faulty, as opposed to harm it causes.
Lost sales from a quiet season, or a road closure not caused by insured damage nearby.
Health and safety fines, which can never be insured (Health and Safety at Work Act 2015, s 29).

General information only. Whether a cover responds depends on the policy wording.

Which clause is in your contract?

Interested party noted
The client, head contractor or financier asks to be named on your policy so they are told about changes such as cancellation. Wording varies, and in some contracts it means something different from being an extra insured.
Covers to raise: Public liability, Contract works
What it does not decide: Being noted does not by itself give that party cover under your policy or a right to claim. That depends on how the insurer words it.
Waiver of subrogation
Subrogation is an insurer's right to recover a claim from whoever caused the loss. A waiver gives up that right against a named party, such as the client.
Covers to raise: Public liability, Contract works, Premises, stock and interruption
What it does not decide: It does not decide whether your insurer agrees to the waiver. Some policies need it endorsed in advance, and giving it up without telling the insurer can affect a claim.
Data and privacy duties
The contract asks you to protect client information, keep it secure and report a breach. It often refers to the Privacy Act 2020, which has its own duties on notifying serious breaches.
Covers to raise: Cyber, Professional indemnity
What it does not decide: It does not decide whether a breach is insured. Cyber policies differ on response costs, privacy claims and fines, and some penalties cannot be insured at all.

General information, not legal advice. The full clause and the policy wording decide how it applies.

Check your certificate of currency against the contract

Check the insured name, limit and dates match the contract. The policy wording, not the certificate, decides what is covered. How a certificate of currency works

What each cover may pay, and what it usually does not

Public liability
May respond to
Customer injury and damage to their property, plus the products extension if you sell your own brand.
Common trigger
A fall in the shop, or a product that harms a buyer.
Usually not covered
Your own stock, and a product that is merely faulty.
Premises, stock and interruption
May respond to
Stock, fit-out and glass, with income cover after insured damage.
Common trigger
Fire, flood, theft or a break-in.
Usually not covered
Wear and tear, and stock that does not sell.
Statutory liability
May respond to
Defence costs if a regulator investigates or prosecutes, depending on the wording.
Common trigger
A workplace incident that draws a regulator.
Usually not covered
Health and safety fines, which can never be insured (Health and Safety at Work Act 2015, s 29).
Cyber
May respond to
Costs after a breach of customer details or card data, depending on the wording.
Common trigger
A hacked online store or till system.
Usually not covered
Hardware that fails through age.

If something goes wrong

Shopfront glass is smashed overnight
A break-in shatters the front window. Stock is taken and the shop is shut while it is made safe.
May respond: Premises, stock and interruption
Have ready
- Police report number
- Stock list and invoices
- Lease glass clause
- Photos of the damage
A clothing rail tips onto a customer
A rail falls and damages a customer's phone and glasses.
May respond: Public liability
Have ready
- Photos of the rail and area
- Staff account
- Your certificate of currency
Burst pipe in the floor above
Water comes through the ceiling and soaks a week of stock. The landlord is unsure who is responsible.
May respond: Premises, stock and interruption
Have ready
- Lease insurance clause
- Photos and stock list
- Landlord correspondence
Online store goes down on a sale weekend
A payment fault stops orders for two days.
May respond: Cyber
Have ready
- Platform incident notice
- Order history for comparable days
- Names of providers involved

Typical examples, not real claims. ACC deals with most injuries, so an injury claim is mostly about property and legal costs. Whether a claim is paid depends on the policy wording and the facts.

The covers a shop usually asks about

People come through the door, the stock sits on the floor, and the takings depend on the doors being open. Each has its own cover.

Cover	The question it answers	Usual fit
Public liability	Who pays if a customer is hurt or their belongings are damaged?	Almost every shop
Stock, fit-out and contents	What if fire, burglary or storm destroys the stock and fittings?	Anyone holding stock or a fit-out
Business interruption	How do rent and wages get paid while the shop is shut for repairs?	Shops that depend on one site
Statutory liability	Who pays defence costs if a regulator investigates?	Shops with staff
Cyber	What if the till system or online store is locked or breached?	Shops that sell or take payment online

Price depends on what you sell, the value of the stock, the building, security and claims history, so an adviser asks a few questions first.

Liability for shops and boutiques

Public liability usually responds to two kinds of event.

Something happens in the shop. A customer trips on a rack base or a rail tips onto a child. Section 317 of the Accident Compensation Act 2001 bars most compensatory damages claims for personal injury, so the claims that remain are mostly damage to a customer's property and legal costs.
Something goes wrong with a product you sold. This is the products extension. Ask whether it is included, and whether goods you import, label under your own brand or have made for you are treated differently.

A landlord usually asks for a certificate of currency. The limit is set by the lease or centre, not the law. If you also offer styling, alterations or made-to-measure work, mention it, because advice and workmanship can be treated differently.

Getting stock cover right

The stock figure is where retail claims often go wrong.

Seasonal swings. Double stock before Christmas insured at the quiet-month figure leaves you underinsured. Ask how peak periods are handled.
Cost or selling price. Ask which basis the policy uses.
Theft conditions. Alarms, locks and forced entry are common conditions. Shoplifting and staff theft are usually dealt with separately from burglary, so ask about each by name.
Glass and fit-out. Many leases make the tenant responsible for shopfront glass, and the shelving and counters you paid for are probably yours to insure.
Stock held elsewhere. Online stock in a spare room or storage unit may not be on the policy.

Business interruption

Business interruption pays lost gross profit and extra costs after damage from an event the property policy covers, such as fire, flood or storm. It does not pay because trade is slow or a road is closed, unless the policy says so. Two points matter for a shop.

Denial of access. If a neighbouring unit has a fire and the authorities block your door, your premises are undamaged. Whether the policy responds depends on the extension, so ask for it by name.
Landlord's repairs. If you lease, your cover depends on their repair timetable too. Read the lease clauses on damage and rent abatement.

Pandemics and government closures are generally excluded from standard wording.

What is usually excluded

Consumer law remedies. Under the Consumer Guarantees Act you owe guarantees to your customers. A refund, repair or replacement for faulty goods is a cost of doing business, not a liability claim.
Labelling rules. Clothing and textiles fall under the Care Labelling and Fibre Content Labelling regulations. Insurance does not make a non-compliant label compliant.
Health and safety fines. Section 29 of the Health and Safety at Work Act 2015 means insurance for a fine under that Act has no effect.
Your own stock and premises, under a liability policy. That is the property policy's job.

Staff, cyber and the owner

Once you employ casual or part-time staff, statutory liability can respond to defence costs for some regulatory proceedings, subject to the wording. If you take card payments or run an online store, an outage can stop sales the way a fire does. Cyber insurance is where that sits. If the business relies on you or a partner, see business protection.

Before you sign a lease

Read four clauses: who insures the glass, who insures the fit-out, what liability limit is asked for, and what happens to rent if the building is damaged. Then ask an adviser to read them too. The building itself is on our commercial property insurance page, and the wider picture is in the business insurance hub.

How we help

A Smiths adviser will phone you to talk through which covers to look at. Some business covers we refer to another licensed Financial Advice Provider, and we will tell you who, and how they are paid, before your details go to that firm. There is no instant online quote. Smiths Insurance & KiwiSaver may receive a commission or referral payment if you buy. Cover and price depend on insurer underwriting and the policy wording. Financial advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931).

Frequently Asked Questions

Do I need public liability insurance for a shop in NZ?

No law requires it for a shop. A landlord, centre or market organiser often asks for it, so check the documents.

Does public liability cover my stock?

No. It covers harm to other people and their property. Stock sits under a property policy.

Does business interruption cover me if the shop is quiet or closed by roadworks?

Usually not. It normally needs insured physical damage first. Ask about denial of access by name.

Does insurance pay for refunds on faulty clothing?

No. Refunds under the Consumer Guarantees Act are the seller's obligation.

Who insures the shopfront glass?

It depends on the lease. Many leases make the tenant responsible.

References

Related industries

Protect the people behind the business

Liability cover protects the business from claims. If you or a business partner could not work, or died, key person and shareholder cover can help keep the business, and your family, going.

Key person cover, if the business relies on you
Shareholder cover, so partners can buy each other out
Income protection for owners and the self-employed

Read the lease clauses before you sign

Tell us what you sell and paste the insurance clause from your lease. A licensed Smiths adviser phones you. If we refer you to another licensed firm, we tell you who first. Smiths Insurance & KiwiSaver may receive a commission or referral payment if you buy.

A licensed Smiths adviser phones you. If we refer you to another licensed firm we tell you who first and how they are paid.

Read the full insurance guides

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.