The Health & Safety at Work Act 2015 (HSWA) significantly increased the personal liability of NZ company directors and officers. Understanding your obligations under this Act — and how insurance can protect you — is essential.
Officer Duties
Under HSWA, "officers" (which includes directors, CEOs, and other senior managers) must exercise due diligence to ensure their company complies with its health and safety obligations. This is a positive, proactive duty — not just a requirement to respond to incidents.
Personal Liability
If a worker is seriously injured or killed and WorkSafe determines an officer failed in their due diligence duties, that officer can be personally prosecuted. Fines for officer breaches can reach $600,000 under HSWA.
What Statutory Liability Insurance Covers
Statutory liability insurance covers: - Legal defence costs for WorkSafe prosecutions - Civil penalties and fines (where insurable by law) - Reparations ordered by the court (in some policies)
What You Can Do to Reduce Risk
- Conduct regular H&S governance reviews at board level - Ensure H&S is a standing agenda item at board meetings - Document your due diligence activities - Get statutory liability insurance as a backstop