DUAL’s Statutory Liability policy provides cover for a fine ordered against the Insured following conviction of an offence, along with cover for the Insured’s defence costs (including in respect of an official investigation involving the Insured). Below is a recent DUAL Statutory Liability claims scenario we wanted to share which illustrates the importance of having this cover in place.
This case involved a farming and planting contractor whose employee was injured in a serious accident while working. The incident prompted a WorkSafe investigation. Fortunately, the Official Investigations automatic coverage clause in the policy was activated, providing legal assistance from a panel law firm. Despite the severity of the incident, WorkSafe ultimately decided not to press charges against the Insured. This claims scenario highlights the importance of early notification so that legal assistance from our panel can mitigate the potential outcome for the Insured.
BackgroundInsured's employee was involved in a serious accident whilst undertaking work for the Insured. WorkSafe was notified following the accident, and subsequently undertook an investigation. The Insured had previously been investigated by WorkSafe in respect of another serious accident resulting from similar circumstances. |
OutcomeThe official investigations automatic coverage in the policy was triggered. A law firm from our panel was engaged to assist the Insured. The Insured had cover in respect of the legal fees incurred with our panel firm. WorkSafe concluded their investigation and decided that there was no basis to lay charges against the Insured.
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Payment$10,000 less deductible |
LessonsThis claim shows the importance of notifying early so that legal assistance from our panel can be engaged to assist early in the process. Without legal involvement here we expect that WorkSafe would have laid charges against the Insured (given the previous accident that WorkSafe had investigated). Charges against the Insured might have resulted in the court ordering the Insured to pay a fine, which would have fallen to the Insured to pay as fines in the health and safety context are uninsurable. |
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Any product information discussed in this blog is subject to the terms and conditions of the policy, eligibility criteria, any additional premium for optional cover, limitations and exclusions.
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The information contained in this blog is intended for licensed insurance brokers and other authorised intermediaries only. DUAL issues insurances on behalf of Certain Underwriters at Lloyd’s of London and/or HDI Global Specialty, acting as their agent. The information is of a general nature and does not take into account the objectives, financial situation or needs of any person. It is intended for the use of professional intermediaries who are expected to consider whether it is appropriate for their clients. Before recommending or offering any insurance product, intermediaries should read the policy wording and assess whether the product is suitable for their client’s circumstances. These are available on request or via our website at DUAL New Zealand.