Business Insurance for a New NZ Company: What Do You Actually Need?

You do not need every policy on day one

When you first register a company in New Zealand, insurance brokers, your landlord, and your first clients may all have opinions on what insurance you need. Some of them will be right. Some of what they recommend can wait until your revenue justifies the premium.

Here is a practical breakdown of what matters most for a new NZ company.

The policies most new NZ companies actually need early

Public liability insurance

If your business involves any contact with customers, clients, or the public (which includes most businesses), public liability insurance is worth getting early. It covers you if a third party suffers injury or property damage as a result of your business activities. Premiums for a basic policy start around NZ$500-800 per year for low-risk service businesses.

Many commercial leases and client contracts require you to have public liability cover as a condition. If you are leasing premises or bidding for contracts, sort this out before you sign anything.

Professional indemnity insurance

If you provide professional advice or services - consulting, design, accounting, marketing, legal, financial advice, IT, engineering, or anything similar - professional indemnity insurance is important. It covers claims that your professional advice or services caused a financial loss to a client.

Professional indemnity is compulsory for some regulated professions in NZ (financial advisors, lawyers, accountants). For others, clients may require evidence of it before awarding a contract. Premiums vary significantly based on the nature of your advice and your revenue, but for a small professional services business expect NZ$1,000-3,000 per year.

Employer liability and ACC top-up

ACC covers work-related injuries in New Zealand, but ACC payouts are capped and do not cover pain and suffering or the full loss of earnings for higher-earning employees. If you have staff, consider whether employer liability cover is appropriate for your situation. An insurance broker can advise on what your exposure is.

What can typically wait for a new company

Business interruption insurance

Business interruption cover pays you if your business cannot operate due to fire, flood, or other disaster. It is more relevant once you have established premises, significant revenue, and fixed costs that continue when you are not operating. For most new companies in their first few months, it can wait.

Key person insurance

Key person cover pays the company a benefit if a critical person - typically the founder or main revenue generator - is unable to work due to illness or injury. This is important insurance once the business depends on one or two specific people, but in your first weeks it is not the priority.

The value of a good insurance broker

Insurance is an area where a broker who works with small businesses adds clear value. They can tell you what you actually need versus what is optional, find you competitive premiums, and make sure your policies actually cover your specific risk profile rather than leaving gaps.

A broker is typically free to use - they are paid by commission from the insurer - so there is no cost to getting professional advice before you commit to a policy.

Find an insurance broker who works with new NZ companies

FreshFirms Connect can introduce you to an insurance broker in your region who works specifically with new NZ companies. You tell us your industry and situation, they reach out with what cover makes sense for your business at this stage.

Find an insurance broker for your new company