All cover · Statutory liability
NZI vs Zurich — Statutory liability
Statutory liability covers fines and defence costs for unintentional breaches of NZ statutes (HSWA, Privacy Act, RMA, Fair Trading Act). Insurability of the fine itself depends on the Act — defence costs and reparation orders are universally insurable.
NZI
IAG New Zealand Limited (NZI brand)
Wording on file: NZI Statutory Liability
Effective: 2018-03-01
Tier D (blocked) FCIB panel
Zurich
Zurich Australian Insurance Limited (NZ branch)
Wording on file: Zurich Statutory Liability
Effective: 2022-05-26
Tier D (blocked) FCIB panel
Side-by-side fact comparison
Each row is a fact-key from the Statutory liability wording. "Not on file" means either the wording doesn't address that fact, or Phase C structured-facts extraction hasn't been run yet on this insurer's wording.
| Fact | NZI | Zurich |
|---|---|---|
| limit of indemnity options | Not on file | Not on file |
| defence costs in or outside limit | mixed | in_limit |
| fines insurable acts list | [ "Health and Safety at Work Act 2015 (defence costs and enforceable undertakings only; fines excluded)", "Privacy Act 1993", "Human Rights Act 1993" ] | [ "Any Act of the New Zealand Parliament (including amendments, re-enactments, Codes, Regulations or other subordinate legislation made under those Acts) except Excluded Acts", "Health and Safety at Work Act 2015 (reparation orders only, not fines)" ] |
| reparation orders covered | You are insured for your legal liability to pay statutory damages or reparations that you become liable to pay arising out of your act or omission in New Zealand in connection with the business. 'Reparation' means the amount of money you are ordered to pay as reparation under Section 32 of the Sentencing Act 2002. | Fine does not include a fine imposed pursuant to the Health and Safety at Work Act 2015, but this definition is extended to include a sentence of reparation imposed following a conviction under that Act. Also, any court order in the nature of damages or compensation is excluded, except a sentence of reparation following a Health and Safety at Work Act prosecution. |
| hswa handling | You are not insured for any fine under the Health and Safety at Work Act 2015. However, defence costs are covered for prosecutions under the Health and Safety at Work Act 2015, and enforceable undertakings under the Health and Safety at Work Act 2015 are covered (subject to conditions including that the amount paid is no greater than the amount we would expect to pay as reparation had you been convicted, and the prosecution could result in an order for reparation if you were convicted). | Fines under the Health and Safety at Work Act 2015 are not covered (excluded from the definition of 'fine'), but reparation orders following a conviction under that Act are covered. Defence costs for HSWA prosecutions are covered. Enforceable undertakings under Section 123 of the Health and Safety at Work Act 2015 are covered for reparation payments to victims and reasonable defence costs in drafting/preparation, subject to conditions. The personal grievances exclusion does not apply to any investigation or inquiry by WorkSafe New Zealand pursuant to the Health and Safety at Work Act 2015. The private prosecutions exclusion does not apply to any private prosecution brought under the Health & Safety at Work Act 2015. |
| privacy act handling | Statutory damages recoverable under the Privacy Act 1993 for an accidental breach are covered. 'Proceeding' is defined by reference to an official complaint or civil proceeding alleging a breach (or potential breach) of the Privacy Act 1993 or the Human Rights Act 1993. | Not on file |
| fair trading act handling | Not on file | Not on file |
| rma handling | Not on file | Not on file |
| key exclusions | [ "4.1 Asbestos – liability in connection with asbestos.", "4.2 Commerce Act – liability in connection with a breach of the Commerce Act 1986 (does not apply to individual persons covered under this policy).", "4.3 Compliance costs – costs incurred in complying with or failing to comply with any abatement, compliance, enforcement or remedial notice or order.", "4.4 Continuing offences – part of fine, reparation or statutory damages relating to any period after you knew or ought to have known an offence was being committed.", "4.5 Dishonesty or fraud – wilful breach of duty or Act, dishonest, fraudulent or malicious act or omission, criminal intent, unlawful profit or advantage, insider trading.", "4.6 Excluded Acts – Arms Act 1983, Aviation Crimes Act 1972, Crimes Act 1961, Land Transport Act 1998, Misuse of Drugs Act 1975, Proceeds of Crime Act 1991, Summary Offences Act 1981, and any other Act specified in the schedule as an excluded Act.", "4.7 Health and Safety at Work Act – fines under the Health and Safety at Work Act 2015.", "4.8 Infringement fees – infringement fees of any kind.", "4.9 Intentional or reckless breach – intentional or reckless disregard of the provisions of an Act.", "4.10 Known claims and circumstances – liability in connection with any claim first known of prior to the inception of this policy.", "4.11 Legal jurisdiction – proceedings or prosecution first brought outside New Zealand, enforcement of foreign judgments, or legal liability under the proper law of a country other than New Zealand.", "4.12 Monetary amounts paid or offered before sentence – any sum paid or offered prior to sentencing without our prior written consent.", "4.13 Nuclear – nuclear reactors, radioactive materials, nuclear weapons.", "4.14 Personal grievances – liability arising out of any contract of employment or service, including personal grievance or similar action by an employee.", "4.15 Private prosecutions – investigations, defence, proceedings, inquiries or prosecutions taken by a person or entity other than the statutory authority or enforcement agency responsible for administering enforcement of an Act.", "4.16 Punitive or exemplary damages – punitive, aggravated, liquidated or exemplary damages imposed by a court for breach of any Act (does not apply to claims under extension 3.8).", "4.17 Retroactive date – claims in connection with an event that occurred prior to the retroactive date.", "4.18 Sanctions – liability that would expose us to any sanction, prohibition or restriction under UN resolutions or trade/economic sanctions of the EU, UK, USA, Australia or New Zealand.", "4.19 Taxes – events or acts or omissions in connection with a requirement to pay taxes, rates, duties, levies, charges, fees or other revenue under an Act.", "4.20 Terrorism – claims in connection with an act of terrorism.", "4.21 War – claims in connection with war, invasion, act of foreign enemy, hostilities, civil war, mutiny, rebellion, revolution, insurrection, military or usurped power." ] | [ "Asbestos: any liability in connection with, directly or indirectly caused by or contributed to by or arising from asbestos or asbestos products in whatever form or quantity.", "Aggravated, Punitive or Exemplary damages: any damages, including exemplary, punitive, liquidated or aggravated damages imposed by a Court for the breach of any Act of Parliament.", "Building defects: any liability in connection with any building or structure affected by moisture/water penetration, mould/fungi/mildew/rot/decay/micro-organisms, or failure to comply with building code requirements.", "Daily continuing offences: cost or payment of any abatement, enforcement, remedial or compliance order; failing to comply with such notices or orders; any fine for a daily continuing offence imposed after you first received notice of intention to prosecute.", "Deliberate disregard: deliberate or reckless disregard of any Act of Parliament; instructing another to discharge obligations without taking reasonable steps; failure to comply with lawful abatement notice, enforcement order, improvement notice, prohibition notice, suspension notice, building consent, Notice to Rectify, Compliance Schedule, Gazetted Notice, or order made by a Human Rights or Privacy Review Tribunal.", "Dishonest acts: any event brought about or contributed to by any dishonest, fraudulent or malicious act or omission.", "Excluded Acts: Arms Act 1983; Aviation Crimes Act 1972; Crimes Act 1961; Criminal Investigations (Blood samples) Act 1995; Criminal Proceeds (Recovery) Act 2009; Land Transport (Road Safety and Other Matter) Amendment Act 2011; Misuse of Drugs Act 1975; Summary Offences Act 1981; Land Transport Act 1998; Anti-Money Laundering and Countering Financing of Terrorism Act 2009; and any other Act specified in the schedule as a further Excluded Act.", "Orders and Costs: any order for payment of costs under the Commissions of Inquiry Act 1908; any court order in the nature of damages or compensation (except reparation following HSWA prosecution); any action, proceeding, inquiry, investigation or prosecution by the Inland Revenue Department or any other revenue collecting authority.", "Personal grievances: any contract of service with any current, former or prospective employee, including any personal grievance or similar action (except WorkSafe NZ investigations under HSWA).", "Prior and pending: any event after the retroactive date but before inception date if you knew or ought to have known and failed to notify before inception.", "Private prosecutions: any prosecution by a person other than the statutory authority or enforcement agency under the relevant Act (except private prosecutions under HSWA).", "Radioactive contamination: ionising radiations or contamination by radioactivity from nuclear fuel or nuclear waste; nuclear weapons material.", "Securities: any actual or alleged offence under an Act of Parliament in relation to the offer, sale or distribution of securities.", "Taxes: any event in connection with a requirement to pay taxes, rates, duties, levies, charges, fees or any other kind of revenue under an Act of Parliament.", "Territorial limits: any liability suffered outside of New Zealand and from any judgment brought in any Court outside of New Zealand.", "War, Act of terrorism: any death, injury, illness, loss, damage, costs or expenses caused by or arising out of war, invasion, act of foreign enemy, hostilities, civil war, rebellion, revolution, insurrection or military or usurped power; or any act of terrorism." ] |
| territory | an event that occurs in New Zealand in connection with the business | any liability suffered outside of New Zealand and from any judgment brought in any Court outside of New Zealand [is excluded]. |
| jurisdiction | The law of New Zealand applies to disputes about this policy and the New Zealand Courts have exclusive jurisdiction. | The construction, interpretation and meaning of the provisions of this policy shall be determined in accordance with New Zealand law. In the event of any dispute arising under this policy including, but not limited, to its construction and/or validity and/or performance and/or interpretation, you will submit to the exclusive jurisdiction of any competent Court in New Zealand. |
| excess default | The excess shown in the schedule will be deducted from the amount we pay for fines, reparations, statutory damages or defence costs. If a claim arises from separate events, acts or omissions then an excess will apply to each event, act or omission. We will deduct only one excess for a series of related events, acts or omissions arising from one source or cause, the highest excess will apply. | Not on file |
| aggregation basis | The most we will pay in total for all fines, reparations, or statutory damages in the aggregate during the annual period is the sum insured. The most we will pay in total for all defence costs incurred during the annual period is the sum insured. The limits under 5.1 A – 'Liability' and 5.1 B – 'Defence costs' are separate. | Our liability to indemnify you for all events under this policy is limited in the aggregate to the amount specified in the schedule applicable for the period of insurance within which you have, or should have, first notified us of the event. The most we will pay in total for all defence costs incurred during the period of insurance is the limit of liability. |
| claims made trigger | you first knew, or ought to have known, of the prosecution in relation to that event, during the period of insurance, and you have advised us of the prosecution as soon as possible, but no later than 30 days after the period of insurance ends. | This policy is a 'Claims Made and Notified' liability insurance policy. It only provides cover if: 1. Arising out of an offence that occurs during the period of insurance and is notified to us during the period of insurance; and 2. The claim arises out of an event which takes place after the retroactive date stipulated in the schedule. |
| automatic extensions | [ "3.1 Defence costs if acquitted – reimbursement of reasonable defence costs where you are subsequently acquitted in a proceeding or prosecution alleging knowing, wilful or intentional act or omission.", "3.2 Enforceable undertakings – amounts agreed to be paid as part of an enforceable undertaking under the Health and Safety at Work Act 2015 and associated defence costs, subject to conditions.", "3.3 Extended reporting period – 12-month extension available on cancellation or non-renewal by insurer at 90% of last premium, within 30 days of effective cancellation/non-renewal date.", "3.4 Mergers and consolidations – cover extended to new company following merger, amalgamation, consolidation or asset sale, subject to conditions and notification within 30 days.", "3.5 New subsidiary companies – cover extended to subsidiary companies created or acquired during the period of insurance, subject to conditions and notification within 30 days.", "3.6 Official investigations cover – defence costs for official investigations involving you arising out of an event or potential event or act or omission in New Zealand in connection with the business.", "3.7 Previous subsidiary companies – definition of you extended to include entities that ceased to be subsidiaries before or during the period of insurance.", "3.8 Statutory damages / reparations – insured for legal liability to pay statutory damages or reparations arising out of your act or omission in New Zealand in connection with the business; exclusion 4.16 does not apply to claims under this extension." ] | [ "Newly created or acquired subsidiary: any subsidiary created or acquired after inception is automatically included subject to written notice and additional premium.", "Subsidiary change of ownership: cover continues for a subsidiary that ceases to be a subsidiary until the expiry date of the period of insurance, in respect of events occurring after the retroactive date and until the date it ceased to be a subsidiary." ] |
| run off availability | If we elect to cancel or refuse to offer a renewal of this policy, then you may pay us an additional premium (being 90% of the last premium), to extend your cover under this policy for another 12 months. However, this will only cover you for events or acts or omissions that happened before the expiry of the effective date of such cancellation or non-renewal. This right of extension will lapse unless written notice of such election, together with payment of the additional premium due, is given to us within 30 days following the effective date of cancellation or non-renewal. | If we refuse to renew this policy, you may, upon payment of an additional premium of 100% of the full annual premium payable for the expiring period of insurance, extend the cover under this policy for a further 12 months from the date of expiry. This option must be notified in writing to us within 30 days of the date of expiry. The limit of liability under this extension is part of and not in addition to the limit of liability specified in the schedule. |
| retroactive date handling | You are not insured for any claim of any type in connection with an event that occurred prior to the retroactive date. | The retroactive date means the Retroactive Date stated in the schedule. Cover only applies to an event which takes place after the retroactive date stipulated in the schedule. Any event after the retroactive date but before the inception date, if you knew, or ought reasonably to have known, of the event and failed to notify the event to us before the inception date, is excluded. |
| investigation costs covered | You are insured for defence costs necessarily and reasonably incurred by you in connection with an official investigation involving you, provided the investigation arises out of an event, or potential event in New Zealand in connection with the business, or an act or omission in New Zealand in connection with the business that may result in you being liable to pay statutory damages, and you first knew, or ought to have known, of the prosecution or proceeding during the period of insurance. | We will pay your civil defence legal costs in relation to any inquiry involving you. Civil defence legal costs mean the legal costs and expenses, including witness costs and expenses, necessarily and reasonably incurred in relation to: a formal inquiry by a regulatory body, which could lead to a prosecution for an offence; proceedings before a Human Rights or Privacy Complaints Review Tribunal. |
| occurrence basis vs claims made | claims_made | claims_made |