Statutory Liability

Provides protection where you have unintentionally broken the law and face criminal prosecution which could lead to a fine.   This includes prosecutions for breach of the Health and Safety in Employment Act (1992) – although this does not cover fines but can provide cover for reparations costs, the Resource Management Act (1991) and most other Acts of Parliament.

Claims example

A leading outdoor clothing and equipment retailer falsely advertised clothing as being at bargin price.   The company was taken to Court and fined $28,000 for misleading and deceptive conduct under the Fair Trading Act (1986), a statutory liability can respond to the fine and the defence costs of such a prosecution.