What should you know about statutory liability insurance?
Statutory liability insurance in NZ protects your business from penalties, damages and fines imposed by courts for unintended breaches of most laws. This insurance also covers the legal costs of investigating and defending claims. The common claims that can arise include from breaches of Health &Safety in Employment Act, Resource Management Act, Commercial Act, Trading Act and more.
Many companies ensure that they do not break the law. However, some laws are difficult to understand, vague, misunderstood or hard to interpret. So there may come a time when a company may unintentionally violate the law. In such a scenario, the company could be held accountable for doing so due to statutory liability, and the insurance helps provide coverage for such scenarios.
It is important to have statutory liability insurance in NZ because companies can have exposure to breaching any number of statutes while carrying out their operations. So it is sensible to alleviate these types of risk from your business by buying this insurance coverage.
You should hire a professional service provider with vast experience in small business insurance in NZ when planning to buy a statutory liability insurance. They can provide coverage specifically tailored to your business or personal needs.
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