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Statutory Liability

Statutory Liability insurance covers directors and companies for unintentional breaches of New Zealand legislation. Directors face personal fines under a wide range of Acts — the Companies Act 1993, the Health & Safety at Work Act 2015, the Employment Relations Act, the Resource Management Act, and others. Statutory Liability cover pays your legal defence costs and, where permitted by law, pecuniary penalties.

Typical premium: $500–$2,000/year
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Key Benefits

  • Covers fines and penalties under NZ statutes (where insurable)
  • Legal defence costs against regulatory prosecutions
  • Covers unintentional statutory breaches
  • Health & Safety at Work Act prosecutions covered
  • Companies Act and Employment Relations Act breaches covered
  • Often bundled into management liability policies

Who Needs This Cover?

  • All company directors in New Zealand
  • Directors of businesses with employees (H&S exposure)
  • Companies in environmental or resource-intensive industries
  • Directors in financially regulated industries
  • Anyone who could face a WorkSafe investigation

Typical Claims

📋 WorkSafe prosecution following a workplace injury
📋 Commerce Commission investigation for fair trading breach
📋 IRD audit resulting in director penalty
📋 Resource consent breach and RMA prosecution
📋 Employment Relations Authority penalty for ERA breach

Statutory Liability — FAQs

Some fines and civil penalties are insurable in New Zealand where the law permits. Criminal fines and fines imposed for deliberate acts are not insurable. Your policy wording and adviser will clarify what is covered.

Yes — statutory liability is specifically designed to respond to H&S at Work Act prosecutions, covering your legal defence costs and civil penalties for unintentional breaches.

No. Public liability covers third-party injury or property damage caused by your business operations. Statutory liability covers breaches of legislation and regulatory prosecutions.

Other Coverage Types
🏛️Directors & Officers (D&O) Liability🗂️Management Liability📋Professional Indemnity
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