Why this matters
Stricter compliance requirements now apply for all resource-related activities, including land use, construction, and development projects.
Penalties for breaches have increased significantly, meaning the financial and reputational consequences of non-compliance are more severe than ever.
The Amendment Act makes penalties under the RMA uninsurable.
If you have Statutory Liability or other Management Liability policies, you can no longer use these policies to cover these fines; this means any insurance policy which currently provides insurance cover for such penalties will now be of no effect.
If you or your company are fined for an environmental breach, any fine or infringement fees imposed will need to be borne by the company or individual themselves.
- The maximum fine for a company has jumped from $600,000 to $10 million.
- For individuals, it has gone from $300,000 up to $1 million.
Because you can’t insure against fines anymore, it is more important than ever to ensure your projects are fully compliant from day one.
The prohibition mirrors a ban already in place under the Health and Safety at Work Act 2015.
The prohibition on insurance for fines took effect on 21 August 2025.
Our Recommendations
Statutory Liability insurance cover is still very important to have.
The policy can still cover reparation, legal fees and/or other experts if you need help in defending yourself in court, or to pay for cleaning up any environmental damage.
Businesses are encouraged to review their current operations to ensure alignment with environmental standards, avoiding costly fines and enforcement action.
Contact Us
It’s important to notify us promptly of any circumstance or situation that could give rise to a claim, as early notification allows us to better assist you in defending your position and ensures the insurer is not disadvantaged by delays. If you become aware of a potential claim, please contact your adviser immediately or reach out directly to our claims team for support.
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