The Public Liability/Professional Indemnity policies arranged for our clients provide valuable protection for their businesses – but sometimes they don’t go far enough.
Most Commercial General Liability policies exclude cover for fines and penalties. Yet fines and penalties constitute one of the greatest risks many businesses face. Governments are increasingly willing to levy large civil fines for non compliance in many areas of regulation – from Environmental Law to Occupational Health and Safety and Employment Practices Law.
Most business owners or managers would have no idea that there are over 5,000 legislative provisions in this country that cater for civil penalties. Nor would they know that fines for Occupational Health and Safety breaches can be as high as $550,000.
Fines for breaches of Environmental Law can be even more punitive – some reaching as high as $5.5 million.
Fines of that size could easily drive many businesses to the wall. Fortunately for your clients this is a risk that can be managed.
Of course the fine itself is not the only risk you face. The costs and distraction of a legal defence are notoriously high.
Note that any breach (of legislation) must not constitute intentional, deliberate, dishonest, fraudulent or malicious acts, including acts of gross negligence or recklessness.