We need to talk about…Statutory Liability insurance

Public Liability? Tick. Professional Indemnity? Sorted. But there’s one business insurance that often flies under the radar — Statutory Liability insurance.

This is the policy many businesses don’t think about…until it’s too late. That’s why it’s time we talked about it.

What is Statutory Liability insurance anyway?

Statutory Liability insurance can cover the cost of fines, penalties, and legal fees resulting from allegations of wrongful breaches of legislations while running your business.

This may include regulations like workplace health and safety rules, Fair Work regulations, privacy laws, or environmental obligations. It’s important to note that Statutory Liability insurance only applies to unintentional breaches of law. So this cover won’t be much good in cases of fraud, criminal offenses or gross negligence.

Why small businesses are vulnerable

Big companies have legal teams to keep an eye on compliance. Small businesses probably don’t. And that’s exactly where trouble can creep in.

When you don’t have legal experts whose job it is to keep up to date with the latest legislations and regulatory requirements, the risk of making a mistake is higher.  You might forget to update an industry licence or not handle a staff complaint the right way.

Even if it wasn’t on purpose, regulators can still issue a fine or penalty. Statutory Liability cover can help take the sting out of those mistakes.

Common myths about Statutory Liability insurance

“I have Public Liability and Professional Indemnity insurance. So I’m covered.”

Not quite. Public Liability insurance covers you for third-party injuries or property damage as a result of your business activities. Professional Indemnity insurance helps you with claims of errors or negligence in the professional advice or services you provide. Neither will help if you get slapped with a fine for breaching workplace laws or missing a licence renewal.

“I’m too small to be fined”

This one’s especially dangerous. Small businesses often assume regulators will focus on big corporations. In reality, fines can hit anyone, whether you’re a solo tradie or running a micro team of three.

Plus, smaller businesses are often the low-hanging fruit. You’re less likely to have in-house legal advice, formal HR processes, or a compliance team, but you’re still required to adhere to laws and regulations, you still probably manage staff and your industry might require you to remain compliant to different processes. That makes small businesses easier to audit, and easier to fine.

“If I didn’t mean to break the law, I’ll be okay”

Intent doesn’t always matter. Most fines under Australian law apply even when the breach is accidental. If you’ve unknowingly missed a compliance deadline, used the wrong wording in a termination letter, or failed to meet reporting requirements, you can still be held accountable.

Don’t let a simple mistake cost you thousands

Statutory Liability is something you might not think about, until a fine lands on your desk. By then, you’d wish you had it.

It only takes minutes to get your business insurance sorted with BizCover. No paperwork, no drama. Just compare multiple quotes on BizCover’s online platform, choose the policy that fits your business needs, and get covered instantly.

Get your Statutory Liability insurance sorted today.