Why Statutory Liability still matters

Written by DUAL | Nov 18, 2025 6:05:29 AM

While recent legal changes have shifted what’s insurable, this type of cover remains a vital part of a business’s risk management strategy - especially in high-exposure sectors.

Here are the top three things brokers should know:

Work, Health and Safety (WHS) penalties are no longer insurable in most states, but defence costs and investigation costs are.

Recent legislative changes mean monetary penalties under WHS laws are no longer insurable in most states. However, defence and investigation costs remain insurable.

Why it matters:
Regulatory investigations can be costly. Without appropriate cover, even minor incidents may result in significant legal expenses - even if no penalty is issued.

Transport clients need specific Management Liability and Statutory Liability coverage for Heavy Vehicle National Law (HVNL) penalties.

Transport and logistics clients face unique statutory risks, particularly under the HVNL. Not all statutory liability policies address HVNL exposures explicitly.

Why it matters:
Transport and logistics clients may be exposed to risks under HNVL. Some policies offer affirmative coverage approaches that address statutory risks with greater clarity. This can assist in understanding how specific exposures, such as those under HVNL, are treated within the policy.

Enforceable Undertakings (EUs) in action.
See why they remain a real risk in this case study:

Transport and logistics clients face unique statutory risks, particularly under the HVNL. Not all statutory liability policies address HVNL exposures explicitly.

Case study

Quarrying company

In February 2024, a tyre explosion injured two workers. The quarry operator was investigated for WHS breaches and entered into an EU in June 2025, committing to over $243,000 in costs, including:

$41,000 in investigation and monitoring
Staff training and facility upgrades
Technology investments and public education
Community contributions

Why it matters:

Even when penalties are uninsurable, EUs can result in substantial financial obligations. Statutory liability policies can respond to:

Legal and advisory costs tied to EUs
Investigation expenses
Public relations and restitution components (depending on the policy)

This case study is provided for illustrative purposes and does not constitute financial product advice. The information is general in nature and may not be suitable for all circumstances. Coverage terms, limits, and responses vary between policies.

Further resources

If you have any questions or would like to learn more about how Statutory Liability cover can support your clients, please don’t hesitate to get in touch with Daniel Brown, Head of Financial Lines | dbrown@dualaustralia.com.au or your local DUAL underwriter.

Any product information discussed in this blog is subject to the terms and conditions of the policy, eligibility criteria, any additional premium for optional cover, limitations and exclusions.

The information contained in this blog is intended for licensed insurance brokers and other authorised intermediaries only. DUAL issues insurances on behalf of Certain Underwriters at Lloyd’s of London and/or Allianz Australia Insurance Limited, acting as their agent. The information is of a general nature and does not take into account the objectives, financial situation or needs of any person. It is intended for the use of professional intermediaries who are expected to consider whether it is appropriate for their clients. Before recommending or offering any insurance product, intermediaries should read the policy wording, relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD) and assess whether the product is suitable for their client’s circumstances. These are available on request or via our website at DUAL Australia.

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