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

Robert Cooper - one of 100 faces of small business

This week it was announced as part of Small Business Week,  that Robert has been named one of the 100 faces of small business for a State Government promotion on the great value that small businesses play in the State of Queensland.

You can see Robert's entry here:

It is the third accolade for CPR Insurance Services in a month and after seven and a half years in business is a real pep up for the company.

For Robert, it is the culmination of many years experience, becoming well qualified, experiencing the highs and lows of a career and always wanting to contribute to his community. Sometimes, these things just come together and you receive recognition for your efforts.

Robert says that there is no doubt that starting your own business is a huge challenge, but with the right research and planning, the right people around you and a good set of values that you apply to the vision of the company, you have a very good chance of making it all succeed.

Robert says he is lucky. He has a strong supportive Wife, Mandy, who is also part of the business, along with efficient and hard working staff such as Julia McLauchlan and Aidan Harmer who are building up their own skills in a learning environment. 

However, the most important and most supportive people for CPR Insurance Services are our clients who have stuck by us and supported us over the past seven years. Our focus remains on providing the best possible service we can and always acting in their best interests. To all our clients, we say thank you!

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CPR Insurance wins Brokerage of the year

CPR Insurance Services picked up the award for the Best Brokerage (1-5 staff) in Australia, last Friday Night (4th May 2018) at the Insurance Business Magazine Awards held at the Westin in Sydney.

Judging came from various parts of the industry. It is a great honour to be recognised for our hard work and particular Business values we follow. A full list of winners is listed here.

Success comes from having great staff, and we thank Aidan Harmer and Julia McLauchlan as important support staff for helping us win such an award.

CPR Insurance has been in operation for more than 7 years now and is only successful because of the wonderful support from our staff, insurers and most importantly, our fantastic clients who put their faith and trust into our company to be their Risk Advisers and Brokers. 

Thank you to all.

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