When it comes to getting the right management liability insurance for your business, there are a range of different factors you will need to keep in mind before committing to a policy.
One of these specific areas is statutory cover, an essential part of any management liability insurance, but one which is also poorly understood. Part of the reason for this is that statutory cover relies on very specific definitions for how these processes are treated.
So what is statutory cover and how can it assist with the smooth running of your company?
Statutory cover is the part of your insurance policy which will protect your firm from fines, in events which do not involve a deliberate mistake on the part of your company. The policy will provide cover for your business to finance any costs associated with breaking a law, including both the legal defence and any penalties incurred as a result of legal proceedings.
For example, if your workplace fails an audit from Occupational Health and Safety, your business can be fined, even if no workers were injured as a result of this failure. Statutory cover can ensure that these fines, which can run to many thousands of dollars, are handled effectively.
A statutory cover policy will be voided if the act was deliberate, as it can only provide cover for fines and penalties incurred as a result of your company's actions. Other things which will void this cover include gross negligence and dishonest, fraudulent or malicious acts.
Whether you are looking to take out or renew your management liability insurance, make sure you choose one which includes statutory cover tailored to your work as a tradie. Also, ensure you discuss the specific details with your broker to ensure you are getting the right levels of care to suit your profession.