Statutory Liability Insurance

Covers defence costs, fines and penalties ordered against you as a result of unintentional breaches of most New Zealand laws, as well as reparation ordered under the Health and Safety at Work Act.

Why would I need Statutory Liability Insurance?

When managing any kind of business, there's always a chance of accidentally violating statutes or regulations. An expensive legal battle can make running your business impossible. Statutory Liability can help set things right if you unintentionally break the law. 

Statutory Liability icon


What does this mean for your industry?

What's covered?

  • Fines and defence costs under most Acts
  • Defence costs as they're incurred (these may need to be repaid, depending on the outcome of the claim)
  • No excess if acquitted of an offence
  • Liability for reparation under the Health and Safety at Work Act

What's not covered?

  • Asbestos inhalation, exposure and/or clean-up
  • Building defects and mould (e.g. failure to perform to the NZ Building Code)
  • Continuing to commit an offence after you should have known
  • Handling or disposing of materials unlawfully
  • Intentional or reckless breaches of Acts
  • Intentional failure to comply to abatement notices, building notices or compliance schedules
  • Prior claims and circumstances already known to you before AA Small Business insured you
  • Cover is excluded for your liability under certain Acts
  • Claims made against you that you don't tell us about in time
  • Reparation, other than under the Health and Safety at Work Act

These lists highlight some of the inclusions and exclusions in this policy. For full details of all inclusions and exclusions, see the policy document.

Statutory Liability Insurance in action

A person slipping on a puddle and falling over



A new employee at Michelle's workshop was badly injured when she fell from a scaffold. A subsequent Worksafe investigation concluded that her safety measures were unintentionally inadequate, creating a dangerous worksite. With Statutory Liability cover, Michelle was able to claim for the resulting reparation order and legal fees. However, by law she had to pay the fine herself. It's worth noting that if Michelle had deliberately ignored regulations, her whole claim could have been rejected.

A paint container that has been knocked over, spilling paint into the drain


Automotive Spray Painter

Hamish accidentally spilled paint while working at a site near a port. The paint ran into a storm water drain and ended up in the harbour, where it stained a floating pier owned by the Port Authority. The council investigated the incident as a breach of the Resource Management Act. Fortunately, Hamish's Statutory Liability Insurance allowed him to claim for the fine ordered and legal costs, while his Public Liability cover paid the cost of cleaning up the drains and damaged property. AA Small Business appointed specialist contractors to arrange the clean-up and remediation, and to help make appropriate submissions in order to lessen the fine.

A person reading an advertisement in a newspaper


Freelance Tutor

Due to a miscommunication, Ella placed an ad that dramatically overstated his usual pricing, making a discount being offered seem larger than it was. She pulled the ad a few days later when she realised her mistake, but the Commerce Commission had already taken notice. An investigation found that she had violated the Fair Trading Act with misleading pricing, and the Commission decided to prosecute. Ella's Statutory Liability cover played an important part in successfully defending her case.

These fictional scenarios were created to illustrate the benefits of Statutory Liability Insurance. All claims are subject to the terms and conditions in the policy document.

Let's get things sorted

Speak to a Small Business Insurance Consultant

Call us on 0800 500 231