How a missing label nearly cost $600,000 and lessons for brokers
A missing safety warning on a children’s sleepwear label may sound minor - but for one retailer, it triggered a Commerce Commission investigation and potential fines of up to $600,000. In Episode 7 of Risky Business, Technical Claims Officer, Oliver Griffin, walks through the claim, showing how early notification and specialist legal advice can make all the difference.
The claim in a nutshell
Who: A retailer of children’s sleepwear
What: Investigated by the Commerce Commission for missing safety labels
Risk: Fines up to $600,000 for statutory liability offences
Outcome: Engaging our panel lawyers helped avoid prosecution
The case highlights how statutory liability works - strict liability offences don’t require intent, meaning that once a breach occurs, it’s about managing exposure and achieving the best possible outcome.
Key lessons for brokers
Early notification matters: advising clients to notify their insurer promptly can reduce legal costs and improve outcomes.
Specialist legal advice is critical: not all lawyers are equal in statutory liability claims - panel lawyers bring the expertise to navigate regulatory investigations effectively.
Know your client’s risk exposure: small oversights, like a missing label, can escalate quickly. Brokers play a vital role in helping clients understand and manage these risks.
Why this matters
This episode is a practical example of how statutory liability claims can arise suddenly and escalate fast. For brokers, it’s a reminder that guiding clients through compliance and insurance strategy isn’t just about policies - it’s about proactive risk management.
Next steps
Watch the video above for the full story.
Explore our Statutory Liability insurance.
Connect with our NZ Claims team.
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