NZ New Company Insurance Checklist 2026: What Cover Does Your Business Actually Need?

Why Insurance Decisions Cannot Wait Until Year Two

Most new NZ company directors underestimate how quickly their liability exposure begins. From the moment the company starts trading, taking on a client, or employing staff, the director is personally exposed to claims that the company cannot pay. Most commercial contracts, commercial leases, and government contracts require evidence of adequate cover before work begins. This checklist covers the eight covers a new NZ company should consider, in order of priority.

1. Public Liability Insurance (Essential for Most)

Public liability insurance covers claims from third parties -- clients, members of the public -- for injury or property damage caused by your business activities. For a trades company, this means a customer slipping on a wet floor you created. For a consultant, it means damage to a client's equipment while you are on-site.

Most commercial premises landlords require a minimum of NZ$1 million public liability as a condition of your lease. Commercial principals (construction sites, hospitals, schools) typically require NZ$2-5 million as a condition of entry. Typical annual premium for a new NZ company: NZ$400-1,500 depending on industry and turnover. Trades and construction firms pay more (NZ$1,000-4,000) due to higher on-site risk.

2. Professional Indemnity Insurance (Essential for Advice-Givers)

Professional indemnity (PI) insurance covers claims arising from professional advice or errors that cause financial loss to a client. It is essential for consulting, accounting, legal, engineering, IT, marketing, financial advice, and design services. The Financial Markets Authority requires licensed financial advisers (FAPs) to hold PI as a condition of their licence. For other professions it is not legally mandatory but is practically required by most B2B contracts. Typical annual premium: NZ$500-3,000 depending on profession and revenue.

3. Employers Liability Insurance (Essential Once You Hire)

ACC covers work-related physical injuries, but employers liability insurance covers the gap: legal claims from employees related to illness, psychiatric injury, or employment disputes not covered by ACC. It also covers the director's personal exposure for Health and Safety at Work Act (HSWA) breaches. A WorkSafe investigation can result in fines of up to NZ$3 million for a PCBU and NZ$300,000 for an individual director. Employers liability insurance covers the legal defence costs of these investigations. Typically bundled with public liability. Additional cost: NZ$200-600 per year.

4. Business Interruption Insurance

Business interruption insurance covers lost revenue and ongoing expenses (rent, wages, loan repayments) if your business is forced to stop due to a covered event -- fire, flood, equipment failure, or loss of premises. A 3-month closure from a flood can end a company with no reserves. Typical annual premium: NZ$800-3,000 depending on annual revenue and the indemnity period chosen (usually 12-24 months). The Canterbury and Kaikoura earthquakes demonstrated that NZ businesses without business interruption cover rarely survived the rebuild period.

5. Key Person Insurance

Key person insurance covers the business if the owner or a critical employee dies or is permanently disabled. The policy pays the company a lump sum -- typically enough to cover replacement costs, service any debt, or wind down the business in an orderly way. For most new sole-director companies, the director IS the business. Key person cover is often required by business lenders as a condition of a commercial loan. Typical annual premium: NZ$500-2,500 depending on the sum insured (usually 2-5x annual revenue) and the director's age and health.

6. Shareholder Protection Insurance

For companies with two or more shareholders, shareholder protection insurance (buy-sell insurance) funds the surviving shareholders to buy out a deceased or disabled partner at a pre-agreed value. Without it, the deceased shareholder's estate inherits the shareholding -- creating a forced partnership and valuation dispute at the worst possible time. Shareholder agreements should always be accompanied by funded buy-sell cover.

7. Cyber Liability Insurance

The Privacy Act 2020 requires NZ companies to notify the Privacy Commissioner and affected individuals of serious privacy breaches. If your company stores client data -- invoices, health information, personal details -- a data breach can trigger notification costs, regulatory investigation, and client claims. Cyber liability insurance covers breach response costs (forensics, notification, credit monitoring), regulatory fines, and third-party claims. Typical annual premium: NZ$500-2,000. Essential for IT, healthcare, accounting, legal, and any company storing client financial or health data.

8. Commercial Vehicle Insurance

ACC levies provide third-party injury cover but not property damage to other vehicles or your own vehicle. For any company using vehicles for business purposes, commercial vehicle insurance covering own damage and third-party property is essential. Personal vehicle policies often exclude business use -- always declare business use to your insurer.

What to Do in the First 90 Days

The most common mistake new NZ company directors make is believing they can defer insurance until the business generates revenue. In practice, most commercial contracts and premises require evidence of cover before you start. The recommended sequence: arrange public liability and employers liability before taking on your first client or employee; arrange PI cover before providing your first piece of professional advice; arrange key person and shareholder protection when taking on business debt; review cyber, vehicle, and business interruption cover at the 90-day mark when your revenue profile is clearer.

An independent insurance broker can compare policies across multiple insurers and tailor cover to your industry at no additional cost to you -- brokers are remunerated by insurers. A comprehensive package covering public liability plus employers liability plus PI can typically be arranged for NZ$1,500-4,000 per year for a new NZ company.