How much does Public Liability insurance cost?
On average, small business owners can expect to pay around $30 per month for Public Liability insurance in New Zealand with BizCover. Also known as General Liability or Broadform Liability, Public Liability insurance is an essential form of cover for almost every type of business, from trades and services industries to white collar professionals and office-based occupations. It is designed to protect you against your legal liability for accidental damage to other people’s property, or if someone was injured as a result of work carried out by your business but is not covered by the Accident Compensation Corporation (ACC). Given the wide range of industries and occupations that require Public Liability insurance, the cost of a policy can vary considerably, determined by a number of key factors which include:
- Your occupation
- The type and nature of your business
- Your business turnover and size
- The amount of insurance cover your business requires
Other factors that could affect the cost of your Public Liability policy include the location of your business, the inclusions and exclusions of your policy, and the insurance provider you select.
To give you an idea, we have put together a snapshot (graph below) of how much a stand-alone Public Liability insurance policy can cost for a small business, by analysing data from BizCover NZ policies sold over the course of 1 July 2023 to 30 June 2024. Our data includes more than 9,000 businesses across many different occupations.
However, the most accurate way to find out the true cost for your business is to simply get an instant online quote.
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What is the average monthly premium for Public Liability insurance?
The average premium cost across all industries is around $30 per month.
Below is the full breakdown.
What Small Businesses Pay for Public Liability Insurance (per month) in NZ:
Data based on New Zealand BizCover customers over the course of 1 July 2023 to 30 June 2024.
What is the average cost of Public Liability insurance by industry?
Typically, the type of industry that your business operates in is one of the biggest determining factors when it comes to calculating the cost of your Public Liability insurance. Businesses that are considered to have a higher risk exposure of causing personal injury or property damage will generally attract a higher premium and vice versa.
For example, businesses within the trades and services, retail and hospitality industries usually have higher premiums as there are a number of things that could potentially go wrong that could lead to a claim being made – think about tradesmen accidentally damaging their client’s property.
It is also important to note that each insurance company assesses risk in different ways, and as such, what one insurer may consider as a high-risk occupation may not be considered high risk by another. This is often due to the number of claims each insurance company has received for each specified occupation.
Below is the full breakdown.
Average Monthly Premium of Professional Liability insurance by the top 3 industries in NZ:
| Industry | Approximate Average Monthly Total Premium |
|---|---|
| Trades | $30 |
| Services | $30 |
| Architects & Engineers | $25 |
How much do Tradesmen pay for Public Liability insurance?
Within the Trades & Services industry there are many different types of occupations with varying degrees of risk. This also means that the premiums vary greatly from one trade based occupation to another.
Here are the average premium our top 3 Trades & Services occupations are paying for their Public Liability
Average Monthly Premium of Top 3 Tradie Occupations in NZ:
| Occupation | Approximate Average Monthly Total Premium |
|---|---|
| Builders | $60 |
| Welding Contractors | $40 |
| Guttering Roof Installation | $35 |
Does the size of my business affect the premium?
The number of employees and the amount of revenue your business turns over can have an impact on the cost of your Public Liability policy.
Unlike the ‘safety in numbers’ theory, the more employees you have, the more likely it is to result in a higher premium. More employees equals more risk, particularly for trades and service based industries. For example, an electrical contracting business with 10 employees, each visiting multiple locations on any one day, has a higher chance of something going wrong compared to a sole trader electrician who may only visit a handful of locations.
Average Cost of Public Liability Insurance by Number of Staff in NZ:
| Employee Band | Approximate Average Monthly Total Premium ($) |
|---|---|
| 1 | $25 |
| 2 | $30 |
| 3 | $30 |
| 4 | $30 |
| 5 | $35 |
| 6-10 | $50 |
| >10 | $70 |
Average Cost of Public Liability Insurance by Revenue in NZ:
| Employee Band | Approximate Average Monthly Total Premium ($) |
|---|---|
| <10K | $25 |
| <25k | $24 |
| 25,000 – 50,000 | $25 |
| 50,001 – 100,000 | $25 |
| 100,001 – 200,000 | $30 |
| 200,001 – 250,000 | $25 |
| 250,001 – 500,000 | $30 |
| >500k | $45 |
Does the level of cover affect the premium?
As with most things in life, the more you buy of a particular product or service, the more it will usually cost. However, fortunately when it comes to Public Liability insurance the cost does not rise too significantly with an increase in the amount of coverage.
The most common level of cover amongst our New Zealand customer base for Public Liability insurance is $1 million, however there is the option to take out $2, $5, $10 or $20 million worth of cover, depending on your business needs.
What is the average monthly cost of Public Liability insurance by level of cover?
| Coverage Level | Average Monthly Total Premium |
|---|---|
| 1,000,000 | $20 |
| 2,000,000 | $25 |
| 5,000,000 | $35 |
| 10,000,000 | $90 |
| 20,000,000 | $150 |
Disclaimer
Disclaimer The Customer Average Monthly Payment Amount Report is based on BizCover NZ customers over the course of 1 July 2023 to 30 June 2024. and presented as a guide only. It may not reflect pricing for your particular business, as individual underwriting criteria will apply. This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusion contained in the policy wording..
