Coverage is provided to the named insured and extends automatically to any:

• Subsidiary.
• Organisations controlled and actively managed.
• Director, employee, partner or shareholder of the Insured, in that capacity.
• Person or organisation to whom the Insured has promised to arrange insurance.
• Social or sporting club formed with the Insured's consent.
• New organisation which the Insured acquires and notifies to us.

New Zealand is experiencing an increased challenge from both legislation and case law, combined with international trends in litigation outcomes.

Changes to the accident compensation, health and safety and consumer legislation during the last decade have exposed both private enterprise and the public sector to the increased prospect of claims by members of the public either under statute, at common law or under the terms of a contract.

Exemplary Damages

As mentioned above, New Zealand’s “no fault” Accident Compensation Legislation is unique in the world and essentially bars legal action for compensation in respect of personal injury.

However, there is a perception that accident compensation legislation does not provide adequate redress for persons injured in New Zealand. This has prompted victims to explore the possibility of bringing common law actions for personal injury seeking exemplary damages (sometimes called punitive damages) - even though our highest courts have repeatedly stated that these awards are intended to punish outrageous conduct, are limited to exceptional circumstances, and are not available to supplement a perceived shortfall in the statutory compensation regime.

These judicial comments have helped to ensure that exemplary damages, although often claimed are rarely awarded; and to ensure that any award is modest and reflects a sense of proportion with contemporary standards and attitudes to money and its purchasing power.

The Policy

The Statutory Liability policy provides protection to businesses for:

• Defence costs associated with alleged breaches of the Building Act, Consumer Guarantees Act, Fair Trading Act, Privacy Act and most other statutes affecting commercial activities. The notable exceptions are police prosecutions and taxation legislation.
• The costs of representation at an investigation or inquiry.
• Any fine or cash penalty payable by the insured following conviction for an offence under the insured statutes, except under the Health & Safety in Employment Act.

Under much of the legislation particularly the Building Act, Health and Safety in Employment Act, Commerce and Fair Trading Acts the result of an adverse judgement can be disastrous both financially and in terms of reputation, Maximum penalties are substantial and the cost of defence can easily exceed the fine itself.

Most recently the introduction of the Health and Safety in Employment Amendment Act has created a number of new areas of exposure for businesses, an even more stringent compliance regime for workplace safety and with it harsher penalties.

(This New Zealand terminology must not to be confused with similarly named global products and is sometimes referred to as ACC Shortfall):
 The Policy

The Employers Liability policy provides protection to employers for:

• Settlements or damages payable (including exemplary damages) in respect of claims for personal injury to employees suffered in the course of their employment and not covered by Accident Compensation.
• The costs incurred in defending or settling these claims, including any prosecution, inquiry or investigation.
• The costs incurred in defending allegations of a breach of the Health and Safety in Employment Act 1992.
• Reparation awards made by a Court following a prosecution under the Health and Safety in Employment Act 1992 and amendments.

Common Law Exposures for Employers

• Mental anguish, in the absence of physical injury
• Food poisoning
• Injury caused by a gradual process; (disease or infection caused by passive smoking, and air conditioning systems for example).
• Heart attack or stroke caused by stress.
• Nervous shock or fright.
• Stress and/or fatigue.

Health and Safety in the Workplace

The Health and Safety in Employment Act (1992) is now more than a decade old and during this period a significant number of employers and businesses have had experience in dealing with the Occupational Safety and Health Service in relation to workplace accidents.

Legal costs and ultimately fines have been the result for many and with the introduction of the Health and Safety in Employment Amendment Act in May 2003 the cost to business for a breach of the legislation is likely to increase significantly.

Among the changes introduced in May 2003 were:

Increased level of fines for companies and individuals

Specific confirmation of stress and fatigue as a basis for prosecution under the legislation.

Amended workplace definition to include motor vehicles as a place of work.

The prohibition on Insurers ability to indemnify its customer/s for fines and penalties.

The introduction of reparation awards made by courts in favour of employees who suffer harm as a result of a workplace accident. This has its origins in the passing of the Sentencing Act 2002 in July 2002.

The expanded definition of “employee” to include volunteers, trainees and workers on loan for the purpose of providing protection to such persons under the legislation.

Employees in NZ are covered for workplace accidents through ACC, however there are some exceptions as ACC does not cover emotional effects such as stress, hurt feelings, and loss of enjoyment. As a result the builderr employees can sue the builder for work related conditions that are not covered by ACC.

(This is New Zealand terminology and is also called Employment Matters and might be better called Employment Issues):

The Policy

Employment Dispute insurance provides protection to employers for personal grievance actions taken by employees and prospective employees as a result of unjustified dismissal, discrimination or other disadvantage.

Coverage is provided for:

• Compensation for intangible loss, such as humiliation or loss of future prospects of employment (but not remuneration).
• Compensation for most breaches of an employment contract, and also certain breaches of the Privacy Act 1993 and Human Rights Act 1993
• The costs incurred in defending injunctions or orders restraining employers from initiating dismissal or other disciplinary procedures.
• Defence costs, fines and penalties arising out of breach of certain compliance provisions of the Employment Relations Act 2000.

A Challenging Environment for Employers

Recent History has seen a number of changes in employment law which have and will continue to challenge even the most careful employers.

The Employment Relations Act 2000 has provided the opportunity for unions to monopolise the collective agreement negotiating process and regain their right of access to employers.

Professionals and professional service firms perform in an environment of increased responsibility and accountability in New Zealand.  With litigation becoming an increasingly common means of settling disputes, professionals are being held more culpable for their advice and actions and any losses suffered as a consequence.

Builders and tradesemen, seen by clients as experts, particularly fall into the grey area of being “professional” – often draughting plans and specifications for small projects, inspecting homes pre-purchase, advising on application etc.

Very few, other than those companies which specialise in “design & build”, take Professional Indemnity cover, and they are inadequately covered under their Public Liability insurance policies.

Public Liability Insurance

Looking for public liability insurance cover can be extremely time consuming and often very frustrating. At Builtin Insurance we aim to make the process of obtaining public liability insurance as simple as possible. We deal only with an insurer who is able to offer comprehensive insurance cover at extremely competitive rates.

Defamation (also called vilification, slander, and libel) is the communication of a statement that makes a false claim, expressively stated or implied to be factual, that may harm the reputation of an individual, business or product. Most jurisdictions allow legal actions, civil and/or criminal, to deter various kinds of defamation and retaliate against groundless criticism.

Defamation liability protects against infringement of trademarks, copyright, registered designs and plagiarism – along with unintentional defamation including negligent advice, mistake or misprint contained in a business publication