All answers / Employee claims
Does liability insurance cover employee claims in New Zealand?
No. Public liability insurance covers third-party claims — customers, suppliers, the public — not your own employees. Employee injuries are covered by ACC. Employment-related claims (discrimination, harassment, unjustified dismissal) need Employer Liability. Regulatory fines and reparations need Statutory Liability.
The three-layer employee cover stack
1. ACC — personal injury at work
Covers medical costs, rehabilitation and weekly compensation when an employee is injured at work. Funded by employer ACC levies. Does not cover non-injury claims or property damage.
2. Employer Liability — non-injury employment claims
Covers claims by employees for personal grievances not covered by ACC — discrimination, harassment, unjustified dismissal. Typically defence costs and settlements.
3. Statutory Liability — regulator action
Covers defence costs, reparations and (where insurable) fines under HSWA 2015, Fair Trading Act 1986, Privacy Act 2020. Criminal fines under HSWA cannot be insured; defence and reparations typically can.
Quick reference — who covers what
| Type of claim | Right cover |
|---|---|
| Customer injured on your premises | Public Liability |
| Employee injured at work | ACC (statutory) |
| Employee personal grievance (dismissal, harassment) | Employer Liability |
| HSWA prosecution after a workplace incident | Statutory Liability |
| Privacy Act 2020 breach + Commissioner action | Statutory Liability + Cyber |
| Client claims your advice caused financial loss | Professional Indemnity |
Get the right cover stack quoted
Compare quotes through Evolve Group Limited (FSP711891). Business-insurance enquiries are referred to Blanket Advice Limited (FSP1004126).
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