This insurance product has been developed to protect companies and individuals against liability for statutory fines and penalties which result from a breach of legislation.

At both federal and state level, Australian businesses face a vast array of legislation. An increasing trend is to impose what is called ’no fault’ liability in the forms of fines or penalties on companies and individuals in breach of such legislation.

The most common terms used to describe ‘no fault liability’ are:

•  Strict Liability, where a breach is deemed to have been committed by a company or individual (subject to limited defences) irrespective of the intent or recklessness with which the conduct was committed.
•  Vicarious Liability where a company or an individual is held liable for a breach of legislation by an employee irrespective of whether the employee intended the act or the company or individual authorised it.

What the policy responds to:

Any monetary sum (penalty) payable to any Regulatory Authority consequent upon breach of an Act, plus legal costs and associated expenses incurred with the investigation, defence (including appeal or resisting appeal) and settlement of my claim.

Go to: www.mga.com for more information.