Statutory Liability can be included as one section of a Management Liability policy.

It is not automatically identical across insurers, and the section should be checked on the policy schedule and wording.

What can the Management Liability section cover? #

Depending on the policy, Statutory Liability can respond to certain:

• Regulatory investigations.
• Defence costs.
• Legal representation expenses.
• Inquiry or court attendance costs.
• Prosecution costs.
• Statutory penalties where legally insurable.

Is every breach of legislation covered? #

No.

The policy can contain restrictions relating to:

• The legislation involved.
• The type of offence.
• The circumstances of the alleged breach.
• Deliberate, dishonest or fraudulent conduct.
• Known matters.
• Other policy exclusions.

Are all fines and penalties insurable? #

No.

Whether a fine or penalty can legally be insured depends on the legislation, offence, applicable law, public policy and policy wording.

Some Australian laws specifically prevent insurance or indemnity for particular penalties.

Is standalone Statutory Liability Insurance different? #

Potentially.

Some businesses arrange Statutory Liability within Management Liability, while others may require a specialist standalone policy or broader liability arrangement.

The appropriate structure depends on the business and the cover available.

Where can I read more? #

Our dedicated Statutory Liability Insurance articles explain the cover in more detail, including workplace health and safety investigations, environmental and privacy matters, claims and quoting requirements.

If you receive a regulator notice or become aware of a possible statutory liability matter, contact Webber Insurance promptly.