Statutory Liability Insurance
Protect against WorkSafe NZ fines, penalties, and regulatory investigation costs.
WorkSafe NZ can impose substantial fines and penalties under the Health and Safety at Work Act 2015. A single serious incident or breach can result in fines ranging from thousands to hundreds of thous...
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Statutory Liability Insurance — NZ Guide
WorkSafe NZ can impose substantial fines and penalties under the Health and Safety at Work Act 2015. A single serious incident or breach can result in fines ranging from thousands to hundreds of thousands of dollars. Statutory liability insurance covers these fines and penalties, plus the costs of legal defence and regulatory investigations. It's not about covering poor safety practices—insurance won't cover deliberate breaches or reckless disregard for safety. Rather, it protects responsible businesses against the unpredictable costs of regulatory action and investigations. For tradies with employees or working on commercial/construction sites, statutory liability is essential protection. Premiums are typically low, starting from NZ$20–50 per month.
What's Covered
What Is Statutory Liability
Statutory liability insurance covers fines and penalties imposed by regulators (primarily WorkSafe NZ) under statutes like the Health and Safety at Work Act 2015. If WorkSafe investigates an incident at your workplace, you could face significant penalties. This insurance covers those financial costs, plus legal defence and investigation costs.
Who Needs It
Any tradie working on commercial or construction sites should have statutory liability cover. WorkSafe conducts inspections on construction sites and commercial work, and incidents can result in prosecutions and fines. Even a sole trader can face fines if they breach health and safety requirements.
Key Exclusions
Statutory liability won't cover fines resulting from deliberate breaches of law, reckless disregard for safety, or knowingly breaching safety regulations. It protects responsible businesses against unexpected regulatory costs, not negligent or intentional violations.
Who Needs This Cover?
- →Any tradie with employees
- →Tradies working on commercial sites
- →Construction workers and builders
- →Anyone working on building sites where WorkSafe has jurisdiction
- →Trades involved in high-risk activities (electrical, roofing, etc.)
- →Subcontractors on commercial projects
Indicative Premium Ranges
Premiums vary by trade type, business size, and claims history. These ranges are a guide only — get a personalised quote for accurate pricing.
| Business Type | Typical Premium |
|---|---|
| Sole trader (0 employees) | NZ$20–50/month |
| Small business (with employees) | NZ$50–150/month |
| Larger business (high-risk operations) | By quote |
Frequently Asked Questions
Can insurance cover WorkSafe fines?
Yes—statutory liability insurance covers fines imposed by WorkSafe under the Health and Safety at Work Act, except for deliberate breaches. If you've acted responsibly but still face a penalty after an investigation, statutory liability covers the cost.
Is statutory liability included in my public liability policy?
Usually not—it's a separate policy or add-on. Public liability covers third-party injury/damage; statutory liability covers your own regulatory exposure. Always check your public liability policy wording.
Do I need statutory liability as a sole trader?
If you work on commercial or construction sites, yes. WorkSafe can issue fines to any business (sole trader or not) for breaches of health and safety requirements. The cost of an investigation and small fine could be significant without cover.
What happens if I'm prosecuted by WorkSafe?
If prosecuted, statutory liability covers legal defence costs and any penalty or fine imposed by the court. Prosecution is more serious than a notice—legal costs alone can exceed NZ$50,000.
Does statutory liability cover employees' compensation claims?
No—that's covered under your ACC levies. Statutory liability specifically covers regulatory penalties and fines, not workers' compensation.
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