In Australia, government policies regarding Occupational Health & Safety within the workplace have become increasingly stringent. As a result, it has become extremely important for business owners to not only ensure that they have the correct policies and procedures in place to ensure the safety of their employees, but also to also have adequate insurance in place to protect their business from any statutory risks that may arise.
Statutory Liability Insurance For Australian Businesses
Businesses in Australia are expected to comply with a variety of legislation across all industries relating to workplace safety. If a business were to breach a law imposed by a Government or regulatory body, they could potentially face an investigation or prosecution, resulting in hefty fines and penalties.
Under WHS statutes in Australia, there are three categories of offence relating to a breach of a relevant section of the Act or regulation. For example, the maximum Corporation penalty for a Category 1 offence is $3 million.
There are a staggering number of statistics each year demonstrating the high number of OHS related legal proceedings resulting from the serious injury or death of an employee or contractor.
Having the correct policies and procedures in place is essential for all businesses to minimise the risks involved in carrying out their duties, however, there is always the risk that a business could unintentionally breach a law. This type of exposure may arise as a result of the actions of the directors, officers and employees of an organisation.
Understanding Your Policy
When seeking the right Statutory Liability policy for your business, it is extremely important to read the fine print when reviewing the wording of policies. Many Statutory Liability policies offered by insurers vary significantly in terms of their inclusions and exclusions, so it is necessary to review what exactly each policy will offer you as you don’t want any nasty surprises when it comes to making a claim.
As a business owner, it is imperative to ensure you have the correct policies and procedures in place to enforce the safety of all of those within the workplace. Incorporating a Statutory Liability insurance policy into your risk management strategy is an effective measure in ensuring your business bounces back from a statutory claim.
Taking the time out to develop a risk management plan could be the difference between avoiding a lengthy and costly legal process if you are found to be in breach of a legislation, something no small business owner wants to face.
Statutory Liability cover can be incorporated as a part of the policies that Regional Insurance Brokers offers. For more information, please contact us.