Statutory Liability Insurance | Master Builders Insurance Brokers
Statutory Liability Insurance
Protect against allegations of wrongful breaches of key legislation.
Fines and penalties
Trustees and others
What is Statutory Liability Insurance?
A Statutory Liability policy offers protection for the costs and expenses incurred by official investigations or inquiries against your business for allegations of wrongful breaches of key legislation in the course of business.
Within the building and construction industry, the most common claims arise from alleged violations of either workplace health and safety laws or environmental laws.
Coverage typically includes the costs and legal expenses incurred from the official investigation, with any subsequent fines and penalties also currently covered under most circumstances. Exceptions include fines and penalties associated with dishonest or deliberate wrongful breaches, and gross negligence or recklessness.
Workplace injuries are, unfortunately, far too common in the construction industry. Should a significant injury occur, the legal costs related to defending a formal investigation and prosecution can be very costly. Without statutory liability insurance cover, many small to mid-sized builders would struggle to recover financially from the costs associated with defending a breach of workplace health and safety legislation.
Statutory Liability cover can be obtained through a packaged ‘Management Liability’ policy, or on a stand-alone basis.
Why do you need this policy?
Here's an example:
An apprentice builder was working from heights on a construction site when the scaffold rail failed, and he fell and later died in hospital.
It was alleged that the apprentice's Employer failed in their duty of care to provide a safe workplace and could potentially face a fine of $250,000.
The employers Insurer appointed solicitors to represent them, and even though they were found liable, the Insurer helped significantly reduce the fine to $50,000.
While the fine is not covered by insurance, the investigations and defence costs were and amounted to $80,000.