As a business owner, it is important that you try to ensure your business is protected from all possible risks. These can range from work, health, and safety, to cyber security, to breaches of the law. It is important to look after the different aspects of your business, including making sure you and your employees comply with relevant governments rules and regulations. This is known as statutory liability.
What is Statutory Liability?
Businesses in New Zealand are expected to comply with legislation across a variety of industries. New Zealand businesses are facing increased exposure to statutory fines and penalties handed down for breaches of legislation, with businesses, directors, and those in managerial positions being held more accountable and responsible for their actions in the workplace. Your business could face increased exposure to things like hefty fines and penalties for unintentional breaches of certain New Zealand laws.
Below are some strategies that may help keep you and your business protected.
Some Tips to Protect your Business
- Follow Government Regulations
When you own a business, it is essential that you read the fine print. Specific laws and regulations may apply to your industry or region.
It can be difficult to keep track of all the rules and laws that your business should abide by. The New Zealand government’s business website is a good starting point. Here, you can explore what central and local government rules apply to your business, to make sure that you are compliant. It’s also a good idea to get legal advice.
- Develop a Risk Management Plan
Creating a plan to manage and mitigate breaches of the law is a simple yet significant measure you can undertake to help safeguard your business. This can involve assessing what laws are applicable to your industry, and then deciding what steps you can take to abide by these rules.
If you need assistance developing your risk management plan, there are professionals who can help. For more information, visit the New Zealand government Work Safe website.
- Educate your Staff
To help your business to comply with the various laws and your risk management plan, your staff hould be aware of their responsibilities and roles in your business’s success., Inform them of mandatory laws related to your industry, other safety regulations and expectations, as well as your risk management plan.
- Get Insurance
Statutory Liability Insurance* protects you, your business and your employees against certain unintentional breaches of New Zealand law (not criminal laws). It covers the costs of representation related to investigation costs for alleged breaches, as well as defence costs, and fines or penalties payable following conviction, where the underlying loaw allows for fines to be paid by insurers.
Why is this important?
It is important to consider having insurance in place. It can be a challenge to ensure that all your employees abide by all the rules, all the time. If a claim or investigation were to occur, this can result in legal costs and fines. If this happens, your small business must be able to cover these fees. Without insurance, many businesses might not be able to financially recover.
Most statutory liability policies will protect you, your employees and your business from fines, penalties and defence costs. However, remember to check the policy in detail before signing Speak to a professional to make sure you have adequate cover for Statutory Liability insurance.
What is typically not covered?
Some things are not covered by Statutory Liability Insurance policies. For example, this includes losses arising from any claim against you for:
- Civil liability as a result of compensation claims by third parties
- Asbestos
- Fines and penalties caused by:
- Dishonest, wilful, intentional or deliberate wrongdoing
- Wilful, intentional or deliberate failure to comply with lawful notice, direction, enforcement action or proceeding under any Act
- Gross negligence or recklessness
- Dishonest, fraudulent or malicious acts or omissions
- Traffic offences
Who should consider Statutory Liability insurance?
A range of occupations and professions may wish to consider this form of insurance including:
- Construction
- Engineering
- Retail
- Hospitality
- Manufacturing
- And more!
Statutory Liability insurance is a protective measure you can take as a business owner, helping to shield your business against breaches of the law.
*This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover is subject to the terms, conditions and exclusions contained in your policy document.
Public Liability Insurance is a trading name of BizCover Limited. BizCover Limited is owned by BizCover Pty Ltd (ABN 68 127 707 975).
