Include insurance in your H&S plan

With new health and safety law expected to come into effect early next year, it’s important you’re aware of your obligations, and the insurance options available to you, in case the worst happens

The Health and Safety at Work Act, which was passed on 28 August, increases the responsibility of businesses, directors, managers and workers to manage health and safety at work.

Increased enforcement

Alongside the new law, Worksafe NZ is ramping up its enforcement activity, which could increase the potential for prosecution if a substantial breach is identified. Although the Health & Safety at Work Act specifically states that you can’t insure for health and safety fines, you can get insurance for the legal costs of defending yourself if you’re prosecuted for a breach of the law.

Higher reparations

In addition to the new health and safety laws, the passing of the Sentencing Amendment Act 2014 has extended the ability of judges to award reparation to meet shortfalls in a victim’s ACC compensation. This will result in potentially larger reparations and more expensive defence costs.

Before these changes, injured parties who faced a shortfall in what they received from ACC weren’t necessarily awarded their full income discrepancy. Shortfalls can arise for a number of reasons:

• ACC only pays 80% of an injured person’s lost income.
• ACC payments are capped at a maximum of roughly $1,850 per week.
• A person’s ACC benefits are calculated on their prior year’s income, and, if this was unusually low (perhaps due to a slow patch or because their income had been split to minimise tax), it could also affect their compensation.

Now judges can require that defendants pay reparations to close any gap. Imagine having to pay, as a lump sum, 20% of a what a person’s salary would have been for the rest of their lives, if they’re permanently injured. The legislation also means claimants will be able to recover medical bills and loss of benefits.

Unfortunately, despite your best efforts, accidents do happen.

Insurance is available

Known as statutory liability insurance, it provides protection for:

• The legal defence costs associated with breaches of legislation, including the Building Act, Consumer Guarantees Act, Fair Trading Act, Resource Management Act and Health & Safety at Work Act.
• The costs of an investigation or inquiry.
• Fines or penalties you may be required to pay under these acts (except for health & safety fines).
• Most policies also cover reparations awarded by a judge in a criminal prosecution.

Despite all the precautions and health and safety plans you may have in place, sometimes accidents happen. If you’re prosecuted, having statutory liability insurance could save you thousands of dollars.

About Builtin New Zealand

Builtin New Zealand is a specialist in insurance for the construction industry.

For more information visit www.builtin.co.nz, email Ben Rickard at ben@builtin.co.nz or call him on 0800 BUILTIN