“Set peace of mind as your highest goal and organise your life around it” – Brian Tracy

At Corcoran French we are fully committed to providing peace of mind for our clients and ensuring they get effective legal solutions to their problems.  For business owners, there are many tools to include in the toolbox to mitigate the risks of operating their business and achieve a greater degree of peace of mind.  An important tool is public liability insurance, often referred to as general liability insurance.  

What is public liability insurance?

Public liability insurance covers you or your business from the financial consequences if an incident occurs that is not covered by the Accident Compensation Commission (ACC).  Public liability insurance typically covers such things as:

·         Loss or damage to a third party’s property.

·         An injury, illness, or death caused by negligence and not covered by ACC.

·         Any legal defence costs you incur.

What doesn’t public liability insurance cover?

Because we are talking about insurance, there will be exclusions!  These will differ from policy to policy, so you’ll need to read and understand your policy’s exclusions.  A few common examples of things public liability insurance doesn’t cover are:

·         Damage to your own property.

·         Known defects.

·         Damage to data or media.

The devil is in the detail so it’s important that you read your policy so that you know what is, and importantly, what isn’t covered.

Is public liability insurance compulsory?

In New Zealand, the law does not usually require you to take out public liability insurance.  But it may be required for particular industries (eg, construction, event management).  You may also be required to carry it if you enter into a contract that says you must.

Well, why spend the money then?

If there is any chance that your business could lead to property damage or personal injury to a third party, then you need public liability insurance.  As much as every business works hard to ensure they don’t, accidents do happen.  The financial consequences can be devastating for your business if this insurance is not in place.

We can help businesses and individuals with legal advice on matters relating to insurance.  Contact us today for specific legal advice - our team are here to help.