Statutory Liability Insurance

Redwood Insurance Brokers makes statutory liability insurance clear, practical, and relevant for running a business in New Zealand. We help you understand what this cover is for (defence and representation costs, and in some cases certain penalties where legally insurable), and we structure it to support you if you are investigated or prosecuted for an unintentional breach of specific legislation. If something goes wrong, we back you and help drive the claim through.

Why statutory liability insurance matters

Running a business means dealing with rules, including health and safety, employment, consumer law, environmental obligations, and privacy. Sometimes things still go wrong despite good intentions, and an investigation or prosecution can be costly, stressful, and time-consuming.

Statutory liability insurance is designed to help with defence and representation costs and, in some cases, certain fines or penalties where they are legally insurable, subject to policy wording and New Zealand law.

Plain-English takeaway: it is not “get out of jail free” insurance. It is financial protection for the legal process when a mistake becomes a matter of law.

What we help with:

We can help you organise cover that may include, depending on insurer and wording:

  • Defence costs for investigations and prosecutions

  • Representation costs for directors, officers, and employees (policy dependent)

  • Reparation and certain fines or penalties where legally insurable (policy dependent)

  • Costs of responding to regulators (policy dependent)

  • WorkSafe and other regulatory exposures depending on your business activities and the policy wording

We’ll talk through what you do, where risk sits, and what a realistic investigation could cost, then recommend limits that make sense.

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What statutory liability is (and what it isn’t)

It can help with:

  • Legal defence and specialist support when you are investigated or prosecuted

  • Certain insurable penalties where allowed, depending on wording and New Zealand law

It generally will not cover:

  • Deliberate, dishonest, or reckless conduct

  • Known issues you did not disclose

  • Penalties that are not legally insurable

  • The cost to fix the underlying problem or redo work after the event

Plain-English takeaway: it is designed for unintentional breaches, not intentional misconduct.

The gaps we look for (so you don’t find them mid-claim)

This is where a broker earns their keep. We check for:

  • Correct business activities declared (the policy depends on what you actually do)

  • Who is insured (business, directors, officers, employees) and how that is defined

  • Reporting requirements and when you need to notify of circumstances

  • Overlap and gaps with management liability, employers’ liability, and public liability

  • Limits that do not match real defence cost risk (legal costs add up quickly)

  • Conduct exclusions and how terms like “reckless” are defined

  • Contractor and site control issues where responsibility for a workplace matters

If there is a risk gap, we will tell you straight and explain the practical options.

Statutory liability vs employers’ liability vs D&O (different jobs)

  • Statutory liability: defence and representation costs, and some insurable penalties, for unintentional breaches of legislation

  • Employers’ liability: certain employee-related claims and defence costs outside ACC, subject to wording

  • D&O and management liability: allegations about decisions, governance, and wrongful acts, plus related defence costs

Plain-English takeaway: these covers work together. We help you build the right mix without paying twice for the same exposure.

How Redwood does it differently

Independent

We compare options across insurers and recommend the best match for your business.

Advice, not just a quote

We explain statutory liability in plain English, including what it cannot do.

A sharper risk lens

We look at your compliance pressure points and where investigations typically start.

Claims advocacy

If you need support, we help notify early, organise the right advisers, and keep momentum.

Fast-moving

You deal with people who can make progress, not a maze of hand-offs.

Our process (simple, on purpose)

  1. Quick chat: your operations, workplace risk, and compliance environment

  2. Review: existing cover (or start fresh)

  3. Recommendations: clear options with differences in limits, deductibles, key terms, and conditionsPlacement: we organise the policies and confirm key details

  4. Ongoing support: changes, renewals, and claims help

If you’re investigated or prosecuted

Time matters. Early response can reduce stress and cost. We help you:

  • Understand what to do first and what to document

  • Notify the insurer correctly and promptly

  • Engage the right legal and specialist support

  • Progress the claim and keep momentum

  • Push for a fair, timely outcome

Want a free second opinion on your statutory liability insurance?


Bring your current policy (or just tell us what you want covered). We’ll review it, explain what matters, and show you options.

Free insurance review

FAQ’s

  •  If an investigation or prosecution would be financially painful, especially in higher-risk industries, it is worth considering. We’ll help you assess your exposure realistically.

  •  It can help with defence and representation costs depending on the wording and circumstances. We’ll explain what is realistic for your business.

  • Sometimes it can contribute to certain penalties where legally insurable, but it depends on New Zealand law and the policy wording. We’ll make this clear.

  • No. Statutory liability is designed for unintentional breaches and usually excludes deliberate or reckless conduct.

  • No. Public liability covers third-party injury or property damage claims. Statutory liability relates to regulatory action for certain breaches.

  • No. We help businesses of many sizes. This page is focused on NZ statutory liability advice.