Understanding Changes to Liability Insurance in New Zealand
What to do if you face a liability claim?
Liability claims are often complicated, involving multiple parties and significant costs. Alongside resolving the issue itself, there’s usually the added challenge of protecting your company’s reputation. Reaching a resolution typically requires input from legal and technical experts —fortunately, these costs are generally insurable.
Your insurer is experienced in managing these types of claims and is best placed to guide you through the process. To achieve the best possible outcome, it’s essential that we’re involved early. As soon as you become aware of a potential claim — whether it’s legal action, an allegation of wrongdoing, or a demand for compensation — get in touch with your insurance adviser.
Importantly, do not admit liability or offer any form of settlement before speaking with your adviser. Early communication gives us the best chance to protect your business and secure the right support from your insurance cover.
For more information on changes to the RMA and liability insurance for your company’s protection, contact your Futurisk Insurance Adviser today.
If your business relies on liability insurance (and most do), there are some important regulatory changes you need to know about. It’s particularly important to note the changes to statutory liability. Under recent Resource Management Act (RMA) updates, fines have increased significantly, and soon it will not be possible to insure against them. This is a significant shift for businesses that previously relied on insurance to cover regulatory penalties.
However, insurance can still cover legal and expert costs if your company faces an RMA prosecution. This operates much like the cover available for breaches of the Health and Safety at Work Act.