Insurability of Fines by NZ Statute

[
  "Goods and Services Tax Act 1985 (GST indemnity payable in addition to Limit of Liability)"
]

The Underwriters will indemnify the Insured for any Claim made under sections 9 to 14 of the Fair Trading Act 1986 which arises out of a Breach of Professional Duty. (Automatic Extension 5 – Insuring Agreement 1.3 only)

[
  "Forest and Rural Fires Act 1977",
  "Health and Safety at Work Act 2015 (Order for Reparation only)",
  "Any Act of the New Zealand Parliament (subject to exclusions)"
]

Employers Liability excludes claims 'as a result of an Employee sustaining Personal Injury that arose out of the failure by the Insured to comply with any improvement, prohibition or suspension notice issued to the Insured or its Employees under the Health and Safety at Work Act 2015 or any amending or replacing legislation.' Statutory Liability excludes 'any fine or infringement fee (other than Reparation) ordered to be paid by the Company and/or the Insured Persons following conviction under the Health and Safety at Work Act 2015' but covers Orders for Reparation under the HSW Act.

Excluded under Statutory Liability Section 4.17: 'for any Fine or infringement fee ordered to be paid by the Company and/or the Insured Persons following conviction under the Resource Management Act 1991.'

"Order for Reparation under the HSW Act" means an order for reparation imposed by the Court on sentencing following conviction of an Insured for an offence under the Health and Safety at Work Act 2015. Exclusion 4.14 states: 'for any monetary amount ordered to be paid by the Insured by way of an order for reparation imposed by a Court following conviction under any Act of Parliament, except an Order for Reparation under the HSW Act.'

The Underwriters will indemnify the Insured for the Damages and Defence Costs resulting from any Claim made against the Insured under the terms of the Fair Trading Act 1986 (sections 9 to 14) or any similar fair trading legislation enacted by the Dominion of New Zealand or the States or Territories of the Commonwealth of Australia.

Contaminated Land means 'contaminated land' as that term is defined under the Resource Management Act 1991 (as amended from time to time). Part 3 Environmental and Pollution Damage provides cover for Clean-up Costs and Claims for Loss arising out of a Pollution Incident on, or migrating from, an Insured Property, subject to terms and exclusions including that remediation must be required by Environmental Laws.

We will cover the insured for civil liability arising from a breach of the Fair Trading Act 1986 (or equivalent legislation in Australia where the jurisdiction specified in the schedule includes Australia). Exclusion 4.6 'Fair Trading Act' does not apply to this extension.

[
  "Health and Safety at Work Act 2015 (defence costs and enforceable undertakings only; fines excluded)",
  "Privacy Act 1993",
  "Human Rights Act 1993"
]

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).

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.

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.

[]

Covered under Automatic Extension 12 (Internet liability): unintentional breach of confidentiality or infringement of any right to privacy, including any alleged breach of the terms of the Privacy Act 2020, committed or alleged to have been committed by the Insured in the provision of its website, use of the Internet, electronic mail or any electronic network. Maximum NZD250,000 any one Claim and in the aggregate.

QBE will indemnify the Insured for any Valid Claim for compensation made against the Insured alleging a breach of sections 9 to 14 of the Fair Trading Act 1986 (or any similar fair trading legislation that may apply in the States, Territories or Countries of the jurisdiction specified in the Schedule).

[
  "Health and Safety at Work Act 2015",
  "Commerce Act 1986",
  "Human Rights legislation (Human Rights or Privacy Complaints Review Tribunal proceedings covered under Defence Costs)",
  "Privacy Act (Human Rights or Privacy Complaints Review Tribunal proceedings covered under Defence Costs)",
  "Sentencing Act 2002"
]

Fines imposed pursuant to the Health and Safety at Work Act 2015 are excluded from the definition of 'Fine', but the definition is extended to include a sentence of reparation imposed following a conviction under that Act. The Enforceable Undertakings extension covers: (a) payments of amends in reparations paid to victims up to NZD 250,000 any one Period of Insurance (included in, not in addition to, the Limit of Indemnity), and (b) reasonable Defence Costs in drafting and preparing the enforceable undertaking up to NZD 250,000 any one Period of Insurance (included in, not in addition to, the Defence Costs limit of indemnity), where a charging document has been filed under the Health and Safety at Work Act 2015. The Personal Grievances exclusion does not apply to any investigation, inquiry or prosecution by WorkSafe 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 and Safety at Work Act 2015.

Defence Costs include costs for proceedings before a Human Rights or Privacy Complaints Review Tribunal. The Excluded Acts list does not include the Privacy Act. Private prosecutions exclusion applies except as carved out. Investigations by a legally empowered authority that allege an Event are covered under the Investigation definition.

The definition of 'Fine' is extended to include a sentence of reparation imposed following a conviction under the Health and Safety at Work Act 2015. Exclusion 2.5 excludes any court order in the nature of damages or compensation, except a sentence of reparation following a Health and Safety at Work Act 2015 prosecution.

Cover A excludes any Claim as a result of an Employee sustaining Personal Injury which arose out of the failure by the Insured to comply with any improvement, prohibition or suspension notice issued to the Insured or its Employees under the Health and Safety at Work Act 2015. Cover B excludes any Claim as a result of an Employee sustaining Personal Injury which arose out of the wilfully reckless omission of the Insured to comply with any improvement, prohibition or suspension notice issued to the Insured under the Health and Safety at Work Act 2015.

Section A Automatic Extension 11.5: cover for unintentional breach of confidentiality or infringement of any right to privacy, including any alleged breach of the terms of the Privacy Act 1993, in connection with the Insured's website, internet, electronic mail or electronic network use. Sub-limit: NZD 100,000 for Loss and NZD 100,000 for Defence Costs, each part of and not in addition to the respective Limits of Indemnity.

Automatic Extension 7 of Section A: QBE will indemnify the Insured for all Loss and Defence Costs arising from any Valid Claim for compensation made against the Insured alleging breach of Sections 9 to 14 of the Fair Trading Act 1986.

Data Protection Legislation means the Privacy Act 2020, and any subsequent legislation that alters, repeals or replaces such legislation and all other equivalent laws and regulations relating to the regulation and enforcement of Data protection or Data privacy in any country. Data Protection Fines means any lawfully insurable fines or penalties which are adjudicated by a Regulator to be payable by a Company for a breach of Data Protection Legislation. The Insurer will pay Loss resulting from a Regulatory Investigation first occurring during the Policy Period, including Defence Costs and Data Protection Fines.

[
  "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)"
]

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.

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.

Excluded: any personal injury which has resulted from any breach or contravention of any provisions of the Health and Safety at Work Act 2015 or any failure to comply with any improvement or prohibition notice issued thereunder. Separately, penalties (defined to include reparation orders) imposed upon conviction for an offence under the Health and Safety at Work Act 2015 are defined but fines or penalties are excluded under Exclusion 5.5.

penalties mean any court costs, reparation order, prosecution witness costs and expenses and prosecution solicitors' costs imposed by the Court on you, upon conviction for an offence under the Health and Safety at Work Act 2015.

[
  "Law Reform Act 1936 (NZ)"
]

Extension 2.11 Health and Safety: We will pay to or on behalf of an insured person: (2.11.1) financial loss, including investigation costs, arising directly from a claim made or investigation commenced against such insured person, by an official body in relation to any alleged breach of workplace health and safety laws; or (2.11.2) defence costs and/or investigation costs in relation to any corporate manslaughter proceeding. Cover is subject to a sub-limit of liability specified in the schedule. Exclusion 5.3.2 carve-out: the conduct exclusion shall not apply to defence costs incurred by an insured person in connection with a corporate manslaughter proceeding or workplace health and safety proceeding.

Notwithstanding Exclusion 3.1 (Bodily Injury / Property Damage), we agree to pay defence costs in respect of any claim that is both first made against an insured and first reported to us during the insurance period where such claim arises from a breach or alleged breach of the Health and Safety in Work Act 2015 (or any amendment or re-enactment thereof), or any other New Zealand or Australian legislation governing workplace conditions and procedures. This automatic extension will not apply if the insured has cover under a Statutory Liability Policy.

Notwithstanding Exclusion 3.2 (Bodily Injury / Property Damage), we agree to pay defence costs in respect of any claim that is both first made against an insured and first reported to us during the insurance period where such claim arises from a breach or alleged breach of the Health and Safety at Work Act 2015 (or any amendment or re-enactment thereof), or any other New Zealand or Australian legislation governing workplace conditions and procedures. This Automatic Coverage Clause will not apply if the insured has cover under a Statutory Liability Policy.

We agree to pay to or on behalf of the insured all loss resulting from any claim for compensation made against the insured alleging breach of any of sections 9-14 of the Fair Trading Act 1986.

[
  "Health and Safety at Work Act 2015",
  "Accident Compensation Act 2001",
  "Sentencing Act",
  "Innkeepers Act 1962",
  "Law Reform Act 1936"
]

The reparation automatic extension explicitly excludes reparation arising from prosecution of an offence under the Health and Safety at Work Act 2015. Employers Liability exclusion 6 (HSE notices) excludes any claim arising directly or indirectly out of any failure by you to comply with any improvement, prohibition or suspension notice issued under the Health and Safety at Work Act 2015.

Notwithstanding exclusion 6 (Fines and penalties) of this broadform liability section, we will cover you for your legal liability to pay an award of reparation in respect of personal injury or damage to property happening within the geographical limits during the period of insurance as a result of an occurrence in connection with the business. Our liability for Sentencing Act reparation claims will not exceed the limit of indemnity shown in the schedule or $10,000,000, whichever is the lesser. This extension does not cover reparation arising from prosecution of an offence under the Health and Safety at Work Act 2015 (or any replacement Act) and any subsequent amendments. Cover for defence costs does not apply to a claim under this extension.

If this extension is stated as INCLUDED in the Schedule, then this policy extends to cover the Insured and any Officer against Defence Costs and Penalties arising out of any Personal Injury which is connected with the business or affairs of the Insured and which is notified to the Company during the Period of Insurance stated in the Schedule or within 30 days after its expiry, or if exercised, during the Extended Reporting Period, provided that the Personal Injury was suffered on or after the Retroactive Date. Exclusion 4 – Fines Penalties etc and Exclusion 5 – Health & Safety Act, do not apply to this extension. Provided that this extension shall not cover the Insured nor any Officer: (a) for any deliberate failure to comply with the Health and Safety in Employment Act 1992 or the Health and Safety of Work Act 2015; (b) if the Insured or any Officer has a Statutory Liability Defence and Penalties Insurance Policy with the Company or any other Insurer for the same Personal Injury.

Penalties means any: (a) court costs, (b) reparation order, (c) prosecution witness costs and expenses, (d) prosecution solicitors' costs, (e) regulators' costs awarded under Section 152 of the Health and Safety at Work Act 2015, imposed by the Court on the Insured upon conviction for an offence under the Health and Safety in Employment Act 1992 or the Health & Safety at Work Act 2015, and does not include any fine or infringement fee.