Whether you are operating a business in viticulture, manufacturing, construction, or even professional services, liability rarely ends at the job site perimeter.
Under the Health and Safety at Work Act 2015 (HSWA), a Person Conducting a Business or Undertaking (PCBU) holds a primary duty of care to ensure the safety of workers and the public. This responsibility applies not just on your premises but also outside of it.
A recent case highlighted this when WorkSafe prosecuted a hire company after an improperly secured trailer caused a serious vehicle crash, even though the company’s staff were not even driving the vehicle.
Sections 37 and 38 of the HSWA require businesses to ensure, so far as is reasonably practicable, that equipment they manage or control is without risks to the health and safety of any person. For the hire company that meant that even though they were not operating the vehicle, or even present at the time of the incident, they were still liable when things went wrong.
Luckily, they had Statutory Liability insurance to help fund the considerable costs that came with being prosecuted.
How does Statutory Liability insurance help?
Changes to the Resource Management Act (RMA) last year mean fines are no longer insurable, however Statutory Liability insurance still plays a critical role by covering defence costs.
Legal fees during WorkSafe investigations or RMA prosecutions, which can escalate very quickly, are covered along with access to specialist legal expertise.
Early notification is critical
If a mishap occurs there are two critical things you need to do:
You have a legal obligation under section 56 of the HSWA to notify WorkSafe if an incident happens.
Notify your insurance broker straight away. Before you engage your own lawyer, you need to get in touch with your broker to ensure costs remain recoverable under your policy. This is because you are often given access to legal support services through the insurer’s specialist legal panel under your policy. Going to an independent lawyer may therefore not be covered.
Accidents happen
You can have the best health & safety processes in the world, and the best people, but accidents will happen, especially if you work in a “high-risk” environment.
Whether it’s in your own yard or down the road, Statutory Liability insurance is your backstop to help counteract a big financial hit when things go awry.
Phil has over 35 years’ experience in the insurance industry. Having worked in a number of locations around New Zealand, Phil has amassed experience across a wide range of local, regional and national occupations, risks, exposures and risk management solutions. Phil now leads the Hawke’s Bay team and enjoys building strong relationships through service and advocacy.
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