Business Insurance NZ
Protect your business from financial risks
Whether you're a sole trader, partnership, or growing company, the right business insurance protects your revenue, operations, and ownership structure. From covering business overheads when you can't work, to protecting against losing a key employee, to funding partnership buyouts, we help you understand which protection your business actually needs.
Why Business Insurance Matters
What is Business Insurance?
Business insurance protects your company from financial risks that could disrupt operations, destroy revenue, or force closure. Unlike personal insurance (which protects you and your family), business insurance protects your business entity, revenue streams, and ownership structure.
Common business risks in New Zealand:
Loss of key people
What happens if your top salesperson dies, or a critical specialist becomes permanently disabled? Revenue can collapse immediately.
Owner death or disability
If a business partner dies, their family typically inherits their share. Without insurance, surviving partners may be forced to sell the entire business or take on massive debt.
Inability to work
If you're self-employed and become seriously ill, your business expenses don't stop. Rent, staff wages, and loan repayments continue even when revenue stops.
Employee wellbeing
In New Zealand's competitive job market, employee benefits (health insurance, life insurance) can be the difference between attracting top talent or losing them to competitors.
Business insurance addresses these risks with four main types of protection. Most businesses need multiple types of protection working together, depending on your business structure, size, and specific risks.
Types of Business Insurance in New Zealand
Four main types of business insurance protect different aspects of your business. Most New Zealand businesses benefit from a combination of these.
Key Person Insurance
What if you lose a critical employee?
Key person insurance pays your business a lump sum if a critical employee, owner, or specialist dies, is diagnosed with serious illness, or becomes permanently disabled.
What it protects:
- •Lost revenue during transition period
- •Recruitment and training costs for replacement
- •Business debts and loan repayments
- •Client relationships and confidence
- •Business value and stability
Coverage types: Life, Trauma, TPD insurance
Payment: Lump sum to the business (typically $100k - $2 million+)
Best for: Protecting business revenue from losing critical people
Buy-Sell Insurance
What if a business partner or shareholder dies?
Buy-sell insurance (also called business continuity insurance) funds the purchase of a deceased or disabled partner's share of the business, ensuring smooth ownership transitions.
What it protects:
- •Partnership buyout funding
- •Ownership succession planning
- •Business from forced sale
- •Families from becoming unwanted business partners
- •Business value and operations
Coverage types: Life, Trauma, TPD for buyouts
Structures: Cross-purchase or Entity purchase
Payment: Lump sum to fund share purchase
Best for: Partnerships, shareholders, multiple business owners
Business Income Protection
What if you can't work and business expenses continue?
Business income protection provides monthly benefit payments to cover your business overheads, salaries, and expenses when illness or injury prevents you from working.
What it protects:
- •Rent or mortgage on business premises
- •Employee salaries and wages
- •Business loan repayments
- •Utilities and essential services
- •Professional fees and equipment leases
Coverage options: Start-Up or Business Continuity (3+ years)
Payment: Monthly benefits for 12-24 months (typically $2,000 - $20,000/month)
Best for: Covering business overheads when you can't work
Employer Group Schemes
Employee benefits to attract and retain talent
Employer group schemes provide life, health, trauma, income protection, and TPD benefits to your employees at competitive group rates.
What it provides:
- •Group health insurance (Southern Cross, nib)
- •Group life, trauma, and TPD insurance
- •Group income protection
- •Private healthcare access for employees
- •Faster treatment and specialist care
Coverage options: Employer-paid, cost-sharing, or voluntary
Payment: Monthly premiums (group discounts typically 10-30% cheaper)
Best for: Attracting talent and supporting employee wellbeing
Business Insurance Comparison
Understanding which type of business insurance you need:
| Insurance Type | What It Protects | Payment Type | Best For | Typical Cost |
|---|---|---|---|---|
| Key Person Insurance | Revenue loss if critical employee dies/disabled | Lump sum to business | Any business with key people | $50-$300/month per person |
| Buy-Sell Insurance | Partnership buyout funding | Lump sum for share purchase | Partnerships, shareholders | $100-$500/month per partner |
| Business Income Protection | Business overheads when you can't work | Monthly benefits (12-24 months) | Self-employed, sole traders, SMEs | $60-$250/month |
| Employer Group Schemes | Employee benefits package | Monthly premiums per employee | Businesses with 5+ employees | $80-$200/month per employee |
💡Many businesses need multiple types: Key Person protects revenue, Business Income Protection covers overheads, Buy-Sell protects partnerships, and Group Schemes attract talent. We'll help you understand which combination is right for your business.
Which Business Insurance Do You Need?
The right business insurance depends on your business structure, size, and specific risks. Here's a simple guide:
If you're self-employed or a sole trader:
- →Business Income Protection (cover business overheads)
- →Key Person Insurance (you are the key person - protects business value)
If you have business partners or shareholders:
- →Buy-Sell Insurance (fund partnership buyouts)
- →Key Person Insurance (if any partner is critical to revenue)
If you have employees critical to revenue:
- →Key Person Insurance (protect against losing them)
- →Business Income Protection (cover overheads if you can't work)
If you want to attract and retain talent:
- →Employer Group Schemes (employee benefits package)
If your business has debt or loans:
- →Key Person Insurance (covers loan repayments if you die/disabled)
- →Business Income Protection (covers ongoing loan payments)
If you employ 5+ staff:
- →Employer Group Schemes (competitive benefits package)
Not sure what you need? That's what we're here for. We'll assess your business situation and recommend the right combination of protection.
Who Needs Business Insurance?
Sole traders and self-employed
If your business stops when you stop working, you need business income protection and key person insurance to protect business value and cover overheads.
Partnerships (2-5 partners)
Buy-sell insurance is essential to fund partnership buyouts and prevent families from inheriting unwanted business stakes.
Small businesses (2-10 employees)
Key person insurance protects against losing critical staff, while business income protection covers overheads if you can't work.
Professional firms
Law, accounting, medical, engineering partnerships need buy-sell insurance for succession planning and key person insurance for revenue protection.
Growing businesses (10+ staff)
Employer group schemes help attract talent, while key person insurance protects critical employees and business income protection covers overheads.
Family businesses
Buy-sell insurance prevents family conflict over ownership, while key person insurance protects against losing family members critical to operations.
Frequently Asked Questions
Common questions about business insurance in New Zealand.
What is business insurance?
How is business insurance different from personal insurance?
Do small businesses and sole traders need business insurance?
What types of situations can business insurance help with?
Is business insurance only for large companies?
How do I know what type of business insurance is right for me?
Can business insurance be tax deductible?
Can I still get business insurance if I have health conditions?
Have more questions?
Let's talkProtect Your Business
Get specialist business insurance advice from an independent adviser. We'll assess your business structure, identify your risks, and recommend the right combination of protection from New Zealand's leading insurers.