Additional Liability Options
A full package of liability insurance includes additional policies to cover a broader set of risks faced by all businesses.
Directors & Officers Liability
Protects directors & officers from liability for allegations of mismanagement of the company, including legal defence costs.
It protects the personal assets of company directors and officers in the event they are personally sued by employees, suppliers, subcontractors, creditors, customers, or other parties, for actual or alleged wrongful acts in managing the company.
It is important to note that insolvency is often excluded, but can be added back upon presentation of financial accounts that demonstrate a healthy solvency position.
Crime (Fidelity)
This protects the company against financial loss due to the fraudulent or dishonest acts of its employees or other third parties. It also includes cover for investigation costs.
OFFICE MANAGER STEALS FROM BUSINESS
A Christchurch company found that their trusted, long time (12 years) office manager had stolen almost $80,000 over a number of years. They did this through fake invoices and transfers of funds to their own personal accounts. Being in a position of trust and having the authority to both approve invoices and make payments made it easy for her to do this. The fraud only came to light when another staff member picked it up.
EMPLOYEE PUT TOOLS ON COMPANY ACCOUNT
A Wellington building company's worker put $6,000 worth of tools on the company's account at their merchant. When this was discovered the employee initially denied doing so. When confronted with evidence he admitted it and confessed that he had sold the tools online.
THEFT OF FUEL
A Queenstown builder operated a company fuel card system for his employees. Over time he suspected that one employee was using it for their private vehicle after they ran up more than $11,000 worth of diesel. When confronted the employee claimed that the card had been stolen, however the insured was able to establish through CCTV footage that it was indeed his employee who had been misusing the fuel card. The police found that the worker had been buying extra fuel then selling it on to friends & family.
Employee Disputes Liability
Provides protection if you get dragged into a dispute with an employee. The policy covers the cost of defending these actions and any damages awarded. Common areas of exposure include a personal grievance action, claims for unjustified dismissal or other alleged disadvantage under the Employment Relations Act.
FAILURE TO PROVIDE AN EMPLOYMENT AGREEMENT, PAY HOLIDAY PAY OR KEEP RECORDS
A builder who resigned following a heated argument with his boss was awarded more than $17,000 by the Employment Relations Authority. The Authority found despite the employee resigning, his employer breached employment law, including failure to keep holiday pay and leave records, pay annual holiday pay and failing to provide an employment agreement. They were ordered to pay $12,000 in penalties for breaching employment law and $5,000 plus 5 per cent interest in unpaid and underpaid holiday pay.
HURT & HUMILIATION & UNPAID WAGES
Steve was awarded more than $10,000 after he won an employment dispute against his former employer. He started working for the builder towards the end of 2016. It was his first job and things got off to a good start, although he did have to text his employer to ensure he got paid. But not long into his employment things "absolutely went to s**t", with pay being withheld. The employer started making threats towards Steve, including telling him that he'd rip his head off.
The Employment Relations Authority (ERA) ruling said Steve was paid $25 an hour under the table. He was never provided with a letter of appointment or an employment agreement. Tax was not being paid to Inland Revenue, so he had no tax records regarding the identity of the employer, the ruling said. After he was fired over the phone in early 2017 Steve took the matter to the ERA.
In mid-January 2017 a new foreman entered the fold and told Steve not to come in to work the next day The ERA said Steve was unjustifiably dismissed because the dismissal process was minimal and unfair and he was not consulted about a possible redundancy.
UNJUSTIFIED DISMISSAL
A Christchurch man was awarded nearly $30,000 for unjustified dismissal after he was sacked for sharing details of his salary with a co-worker. James was hired in June 2017 as a salesman for Whitehouse Builders, a Christchurch building firm, along two other sales staff. After his base salary was reduced he discussed this with another staff member, who confronted the employer and subsequently resigned.
Whitehouse claimed he had not dismissed James, but had told him to go so that there was some space for them both to cool off. However, the ERA found James was unjustifiably dismissed and suffered an unjustifiable disadvantage in his employment by having had his pay reduced unilaterally, and was entitled to a payout. He was awarded $28,630, after a 30 per cent discount was applied due to breaching good faith by revealing his salary.
Legal Prosecution Defence Costs
Covers the legal costs defending a criminal prosecution against the directors, managers and employees for acts committed whilst going about their daily work. It protects you against the cost of having to defend unexpected legal action for criminal acts.
ASSAULT CHARGE
A builder had an argument with two subcontractors he suspected of taking drugs on his site, and the argument became physical. The subcontractors subsequently laid a complaint with the police and the builder was charged with assault. It took 18 months of protracted legal proceedings before he was cleared and charges dropped. His insurance picked up legal costs of more than $20,000.
THEFT ALLEGATION
A builder doing renovation work had a falling out with their client and was accused of theft of jewellery. The homeowner laid a complaint with Police who investigated and this led to charges being laid. These were eventually dropped, but there were many hours of lawyer's fees to pay.