Liability cover for the day something goes wrong.

There's no law that says you must have it, but in practice most NZ sole traders and small businesses do. Public liability responds when your work injures someone or damages their property — a dropped ladder through a client's window, a slip on a wet floor you were responsible for. Many clients, landlords, site managers and principals won't let you start work without a certificate of currency, so it's often the first policy a new business arranges.

It helps with the cost of defending a prosecution or investigation for an unintentional breach of NZ legislation — the Resource Management Act, Fair Trading Act, Privacy Act and the Health and Safety at Work Act are common ones — and it can pay fines and reparation where the law allows insurance to. One important limit: fines under the Health and Safety at Work Act 2015 can't be insured by anyone, but statutory liability can still cover your defence costs and any reparation ordered to a victim. Your broker will explain exactly what your wording responds to.

ACC covers most workplace injuries and stops employees suing for them — but not every injury or illness is covered by ACC. Gradual-process conditions, some occupational diseases and mental harm can fall outside the scheme, and an employee can then bring a claim against you directly. Employers' liability is designed to respond to those claims, including the cost of defending them. It's inexpensive relative to the rest of your programme and commonly sits alongside public and statutory liability.

Usually not. Standard public liability policies exclude damage to property in your care, custody or control — the car you're servicing, the roof you're on, the machine you're repairing. Some insurers offer an extension for that exposure, and for contractors it may be a contract works policy that fills the gap. Tell your broker what you handle day to day and we'll check the exclusion doesn't leave you exposed.

Limits of $1 million, $2 million and $5 million are the ones you'll see most often in NZ, and the right one depends on the size of the claims your work could realistically cause, what your contracts demand and what your industry considers normal. Premiums always depend on your situation — your broker will talk through the options and gather competitive quotes so you can compare real numbers.

It depends on the wording. Some policies cover your liability for work done by subcontractors on your behalf; fewer cover the subcontractor's own liability. The usual approach is for each subbie to carry their own public liability, and for you to ask for their certificate before they start. Your broker can help you set that requirement up — and review your policy so you know where it stops.