Statutory Liability

Across all industries, companies are expected to comply with a variety of statutes. These laws created by government are not easy to understand, or are quite onerous but ignorance is no excuse. A breach of a statute could result in the company facing an investigation or prosecution by a regulatory body and subsequently the imposition of a fine or penalty.

We recommend setting internal policies in place. Despite this, there remains an ongoing risk that a company may face exposure due to unintentionally breaching a statute. Such exposures can arise not only from the actions of the company itself but also from the acts of its directors, officers and employees.

A Statutory Liability policy is designed to protect the insured company and its directors, officers or employees from an insurable loss incurred as a consequence of a wrongful breach of statute.

Who needs it?

Any company in any industry is exposed to regulations relating to workplace safety, employment law and environmental regulations, to name only the most commonly cited ones.  An unintentional breach of these statutes can result in costly fines and investigation costs.

Insurers will consider a range of professional risks, but they are not meant to be a replacement for internal controls and procedures. They will want to see a genuine focus on safety at work, employment practices and environmental compliance. Where a risk is perceived to be higher, Insurers may seek extra information and may choose to decline insurance or restrict cover for higher risk segments. Management of the risks must be demonstrated

What can it cover?

The cover provided will include statutory fines or penalties (where they can be indemnifiable by law)  and the legal costs incurred in defending a claim which alleges a wrongful breach of statute. In addition, cover includes the costs incurred attending any regulatory investigation.

Further the policy can include features such as:

  • Advancement of defence costs -  advance payments even before it has been established whether the company is liable to pay a statutory fine or penalty.
  • Reputational crisis containment - in the case of an investigation or prosecution by a regulator, public relations expenses to assist in protecting a company’s reputation.
  • Costs related to workplace audits - will pay for workplace audits carried out by the regulator.
  • Experienced claims specialists - respond appropriately to investigations and workplace audits in the event of a claim.

Who can help?

Statutory Liability insurance can be taken as a “stand alone” cover or included within a Management Liability policy. These covers are affordable and may even be paid monthly for a small extra cost. If you want to know more about these policies and conditions relevant to your profession, contact a specialist insurance broker such as CPR Insurance Services.We can be contacted on 07 3123 1137 or 0439 530910. Email is enquiries@professionalrisk.com.au.

CPR Insurance – Experts who will save you 

Latest News

High Court dismisses Business Interruption Test Case

Today the High Court dismissed appeal by Insurers on the Business Interruption test case. Even the big insurers make silly mistakes! But you the policy holder may benefit if you were one of the 40% of Business Pack policy holders that added Business Interruption cover to their Business Pack. While it was never the intent of insurers to cover policyholders for the loss of income from a pandemic, the fact that insurers never factored in a risk premium for it, and the fact there is supposed to be a material or physical loss to trigger the Business Interruption section, none of that matters according to the highest Court in the land. So what was the mistake? Simply that when insurers defined what they considered to be the definition of an infectious disease, they referred to the Quarantine Act of 1908 which since was superseded by the Biodiversity Act of 2015. Because the Quarantine Act of 1908 no longer exists, apparently you cannot draw on this for a definition of an infectious disease? Not one of the insurers picked up on this! Shows how much interest we take on the business of Governments, except what is reported in the media.

read more

Three Years running - Insurance Brokerage of the Year 1 to 5 staff

Mandy and Robert Cooper were extremely honoured and astounded to once again win, Insurance Brokerage of the Year for 2020 from Insurance Business Australia magazine. This is the third year running.

While this year has not been the easiest of years for the business with Covid 19, the Recession, the hard market and issues at Lloyds of London, we are literally all in this together as an Insurance Industry.

CPR Insurance Services continues to make our clients the number one focus of our business while managing our relationships with Insurers, who we need more than ever in this market climate.

CPR Insurance Services are a highly ethical Brokerage with a reputation as a trusted advisor who always acts in the Client's best interests. Their experience, knowledge and expertise is amongst the highest in the industry.

CPR Insurance Services is now ten years old as a business and is proud of being an Authorised Representative of Ausure and their partnership with Steadfast, giving CPR the strength and backing to match it with any Broking firm in the Insurance Industry, but remain focussed on supporting the Small to Medium business segment.

Memberships of the National Insurance Brokers Association, Australia and New Zealand Institute of Insurance and Finance, Australian Insurance Law Association, Australian Professional Indemnity Group and the Australian Institute of Company Directors, ensures CPR Insurance Services maintains the high standard of knowledge and expertise required to be one of the best Brokerages in Australia.

CPR Insurance Services also plays a strong role in their local community supporting other Sporting Clubs and Community organisations. They also support and promote local businesses with their operation of the Kedron Brook Business Group who meet regularly and has 174 members.

We are truly honoured to receive this National award once again for the third year as a recognition of CPR Insurance Services contribution.

read more