All answers / Startup essentials

What insurance is essential for startups in New Zealand?

Six essentials for an early-stage NZ startup: 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.

The six essentials

1

Professional Indemnity

What it covers: Protects against client claims for errors, omissions or negligence in your product, advice or service. Claims-made basis.

When you need it: Any startup with paying customers.

2

Cyber Insurance

What it covers: Costs from data breaches, ransomware, social engineering fraud, regulatory investigations under the Privacy Act 2020, and cyber business interruption.

When you need it: Required from day one if you handle customer data.

3

Public Liability

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.

4

Directors & Officers (D&O)

What it covers: Personal liability of directors and officers for decisions made in their role. Covers defence costs and settlements.

When you need it: Once you have an external board or institutional investors.

5

Business Contents

What it covers: Laptops, monitors, dev kit and office equipment against fire, theft and accidental damage.

When you need it: Once you have shared office space or significant kit.

6

Statutory Liability

What it covers: Fines (where insurable) and reparations under HSWA 2015, Privacy Act 2020, Fair Trading Act 1986. Criminal fines under HSWA cannot be insured.

When you need it: Once you have employees or process personal data at scale.

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