Part of our “Quick Insurance Q&A (NZ)” series answering common insurance questions for Kiwis.
What insurance do self-employed people need in NZ?
If you’re self-employed, your income usually depends entirely on your ability to work.
That means the most important insurance is:
Cover that protects your income.
Key types of insurance to consider
1. Income protection (top priority)
Replaces income if you can’t work due to illness or injury.
This is usually the most important cover for self-employed people.
2. Life insurance
Covers:
- Debt (like a mortgage)
- Financial support for family
3. Trauma insurance
Pays a lump sum if you’re diagnosed with a serious condition like:
- Cancer
- Heart attack
- Stroke
4. Health insurance
Helps you:
- Access treatment faster
- Reduce time off work
Why self-employed people need different advice
You don’t have:
- Sick leave
- Employer support
- Guaranteed income
So your insurance needs to be:
- More tailored
- More flexible
Common mistakes
- Relying only on ACC – see what ACC you qualify for here.
- Not covering illness (only injury)
- Choosing the cheapest policy without understanding definitions
How much cover should you have?
A common approach:
- Income protection: enough to cover essential expenses
- Life insurance: cover debt + dependents
- Trauma: 1–2 years of income
Bottom line
For self-employed Kiwis:
Protecting your income is usually more important than anything else.
If you’re not sure what this looks like for your situation, it’s usually worth having a quick chat. At Canvas Insurance, we help Kiwis make sense of their options and set things up in a way that actually fits. Get in touch with Kris directly if you want to talk it through with a broker.
