Tech startup insurance / Essential cover
Essential insurance for NZ tech startups — 6-cover checklist
PI + Cyber + PL as the day-1 stack. D&O when you take an external board seat. Statutory Liability when you have employees or material data processing.
Professional Indemnity (PI)
What it covers: Protects against client claims for errors in your software, advice or service.
When you need it: Day 1 of paying customers.
Indicative cost: $35–$80/month
Typical limit: $1M–$2M
Investor due-diligence checklists routinely request a current PI certificate.
Cyber Insurance
What it covers: Costs from data breaches, ransomware, BEC, regulatory investigations under the Privacy Act 2020, cyber business interruption.
When you need it: Day 1 if you handle customer data.
Indicative cost: $30–$120/month
Typical limit: $500K–$2M
Privacy Act 2020 mandates notification of serious breaches. Cyber covers the notification cost + forensic response.
Public Liability (PL)
What it covers: Third-party bodily injury or property damage from your business activities, including legal defence.
When you need it: Required by most office leases and any in-person event.
Indicative cost: $15–$35/month
Typical limit: $1M–$2M
Often bundled with Contents in a Combined Business Policy at a small additional premium.
Directors & Officers (D&O)
What it covers: Personal liability of directors and officers for decisions in their role. Covers defence costs and settlements.
When you need it: When you take an external board seat or institutional investment.
Indicative cost: $100–$300/month
Typical limit: $1M–$5M
Investors and board candidates may require D&O as a condition of joining.
Business Contents
What it covers: Laptops, monitors, dev kit, office equipment against fire, theft, accidental damage.
When you need it: Shared office or significant kit in one location.
Indicative cost: $15–$50/month
Typical limit: Sum-insured = total kit value
Cover follows the equipment to home offices on most NZ policies; confirm with the wording.
Statutory Liability
What it covers: Fines (where insurable) and reparations under HSWA 2015, Privacy Act 2020, Fair Trading Act.
When you need it: Once you have employees or process personal data at scale.
Indicative cost: $25–$80/month
Typical limit: $500K–$1M
Criminal fines under HSWA cannot be insured; defence costs and reparations typically can.
FAQ
What insurance is essential for startups in New Zealand?
Six essentials: Professional Indemnity, Cyber Insurance, Public Liability, Directors & Officers, Business Contents, and Statutory Liability. The smallest viable starting stack is PI + Cyber + PL — add D&O when you take an external board seat, and Statutory Liability when you have employees or process personal data at scale.
Which of these is needed first?
Day 1: PI + Cyber + PL if you have paying customers and handle data. D&O kicks in when you have an external board or institutional investors. Statutory Liability kicks in with employees or material data processing.
Do investors actually check?
Most institutional investors and many strategic clients request a Certificate of Currency for PI and Cyber as a standard due-diligence item before contract signing or investment closing.
Get your startup cover stack quoted
Compare quotes through Evolve Group Limited (FSP711891). Business-insurance enquiries are referred to Blanket Advice Limited (FSP1004126).
Get Free Quotes