Products Liability Insurance NZ

What is Products Liability Insurance?

Products liability insurance protects your business against claims arising from defects in products you manufacture, supply, or sell. If a product causes injury, illness, or property damage to a third party, they may make a claim against your business - and products liability insurance covers your legal defence and any damages awarded.

In New Zealand, the Consumer Guarantees Act 1993 and Fair Trading Act 1986 provide consumers with significant rights against businesses for defective products. Products liability insurance is essential for any business involved in the supply chain.

What Does It Cover?

• Personal injury to third parties caused by products
• Property damage caused by products
• Product defect and design flaw claims
• Product recall costs
• Legal defence costs
• Settlement and compensation costs
• Inadequate warning or instructions

Who Needs Products Liability?

Products liability insurance is essential for any business involved in manufacturing, supplying, or selling products:

• • Manufacturers and producers
• • Wholesalers and distributors
• • Retailers and retailers
• • Importers
• • E-commerce businesses
• • Food and beverage businesses
• • Beauty and cosmetics suppliers

Typical Costs

Products liability insurance costs vary based on your industry, product type, and sales volume. Typical costs start from:

• • Small retailer: From $600/year
• • Wholesaler: From $1,200/year
• • Manufacturer: From $2,000/year
• • Food business: From $1,500/year
• • High-risk products: From $3,000/year