Statutory Liability Insurance

If you, or your business, unintentionally breached a New Zealand Act, would you be covered? Even without realising, you could still be legally and financially liable for an error committed by you, your business, or your employees.

So, if you are a business operating in New Zealand, you need Statutory Liability Insurance.


Picture this. You own a small liquor store, one of your casual employees sells alcohol to a young woman whom they assumed to be over 18.  However, they failed to ask for identification, and it transpires that the customer was only 16 years old.

As the owner, you are prosecuted and fined $1,000 under the Sale of Liquor Act for breaching the terms of his licence by selling liquor to minors.

What is Statutory Liability Insurance?

A statutory liability policy is designed to protect businesses from fines, penalties and reparation under legislation imposed by the courts for unintentional breaches of most laws in New Zealand. It also covers the legal costs of investigating and defending claims.

A statutory liability policy also provides access to specialist legal assistance and expert advice if you, or your business, are being prosecuted for breaching an Act.

What does Statutory Liability Insurance cover?

Statutory liability insurance covers you, your business, and your employees for reparations and the cost to defend prosecutions.

It can cover prosecutions under many of New Zealand’s unique laws, including Health and Safety at Work Act 2015, Food Act 2014, Resource Management Act 1991, Building Act 2004, Consumer Guarantees Act 1993, Fair Trading Act 1986, Privacy Act 1993.

It can also cover investigations by the Commerce Commission or investigations of workplace injuries.

The policy does not cover employee contract claims, police prosecutions or IRD proceedings and does not cover reckless breach or deliberate disregard of statutory requirements.

Do I need Statutory Liability Insurance?

Any company, business or organisation operating in New Zealand needs statutory liability cover.

The key definition for statutory liability insurance is ‘unintentional’. It isn’t a bail-out package that you can call on when you have deliberately fallen foul of the law.

But, the scope of statutory liability insurance can be so far-reaching that there are few limits to what it covers. It’s far more than just insurance that covers legal defence costs, but a policy that no business can afford to be without.

How can we help?

At Wayne Grayson & Associates, we believe an informed insurance decision is the right one. Whether you’re after a business or personal insurance, our expert brokers will ensure your insurance is the right fit for you.

We offer Statutory Liability Insurance that protects you, your business, and your employees against unintentional breaches of New Zealand law that result in prosecution.

Contact one of our brokers for advice on the best liability solution to suit your organisation.



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