Statutory liability insurance covers fines and penalties imposed under many New Zealand Acts of Parliament.
It also covers the cost of defending these cases in court if necessary. In terms of health & safety breaches, while fines and penalties cannot legally be insured, the policy will pay legal defence costs and any reparations that may be awarded by a judge.
Greater enforcement of health & safety regulations, as well as changes to the law allowing higher reparation payments, are increasing the need for adequate insurance cover.
- building without a consent when required
- failing to use a written contract when required
RESOURCE MANAGEMENT ACT
- failure to comply with a resource consent condition
- pollution of land or waterways with run off from site or air pollution from dust
- illegal dumping of site waste
FAIR TRADING ACT
- misleading conduct
- misrepresenting your qualifications, experience and license status
- misrepresenting your trade association membership
- misrepresenting your ability to provide independently insured guarantees
HEALTH & SAFETY AT WORK ACT
- prosecution for failing to take all practicable steps to ensure the health & safety of workers (legal defence costs only)
- reparations awarded by a judge to cover lost benefits, as well as any shortfall in an injured worker’s compensation from ACC
HOW MUCH DOES IT COST?
The cost of a fine for breaching the law could easily run into thousands of dollars, not to mention the potential legal costs if you’re taken to court. And if a judge awards reparations to an injured party under our health & safety legislation this could easily accumulate to many thousands of dollars. Compared to this, statutory liability insurance premiums are an essential investment in managing your risk.
POLICY KEY FACTS
This is meant as a summary of the most important items of the policy. For a complete understanding of what it does and doesn’t cover you should always read the full policy wording.
- Fines payable on conviction of an offence
- Legal defence costs
WHAT'S NOT COVERED
- Excluded acts, including the Crimes Act and Transport Act
- Fines & penalties under health & safety legislation (although legal defence costs and reparations are covered)
- Events happening prior to the policy’s retroactive date
- Deliberate or dishonest actions
OTHER THINGS YOU SHOULD KNOW
- An excess is payable for each claim