Businesses and their directors, officers and employees can face investigations or proceedings for alleged breaches of legislation.

Statutory Liability Insurance can provide protection against certain costs arising from these matters.

What can Statutory Liability Insurance address? #

Depending on the policy, cover can include certain:

• Regulatory investigations.
• Defence costs.
• Legal representation expenses.
• Prosecution costs.
• Statutory penalties where legally insurable.
• Other specified costs arising from statutory proceedings.

What types of laws can be relevant? #

The actual scope depends on the policy.

Examples can involve legislation concerning:

• Workplace health and safety.
• Environmental protection.
• Employment.
• Privacy.
• Consumer protection.
• Food safety.
• Other business regulation.

Not every law or offence is automatically covered.

Does the policy cover deliberate breaches of the law? #

Do not assume so.

Statutory Liability Insurance is generally designed around unintended or alleged breaches rather than deliberate criminal conduct.

Policies commonly contain exclusions relating to dishonest, fraudulent or intentional conduct.

Are all fines insurable? #

No.

Whether a fine or penalty can legally be insured depends on:

• The legislation involved.
• The offence.
• Applicable law.
• Public policy.
• The policy wording.

Some legislation expressly prevents insurance from responding to particular penalties.

Where is Statutory Liability commonly found? #

It can be available:

• Within Management Liability Insurance.
• As a specialist standalone policy.
• Through certain broader liability programs.