RMA fines now uninsurable

RMA amendments – what you need to know

On 20 August 2025, amendments to the Resource Management Act (RMA) took effect significantly increasing maxiumum fines for environmental offending under the Act and making it unlawful for insurers to cover RMA fines and infringement fees.

This applies to all fines imposed from 21 August 2025, regardless of when a case began or what your policy wording says.

Here’s what you need to know and why Statutory Liability insurance is still essential for managing RMA risk.

What’s changed in the RMA

The Resource Management (Consenting and Other System Changes) Amendment Act 2025:

• Increased the maximum fines for breaches of the RMA
  • Individuals – from $300,000 to $1 million
  • Companies/trusts – from $600,000 to $10 million
• Removed insurance cover for RMA fines and infringement fees
  • From 21 August 2025, it is unlawful for insurers to pay fines under the RMA.
  • Applies to new and existing policies.

This means individuals and businesses are now directly responsible for resource management fines and infringement costs.

What this means for your Statutory Liability policy

Fines are no longer insurable

Even if your policy wording suggests fines and infringement fees are covered, insurers are prohibited to cover any RMA penalties imposed from 21 August 2025.

Defence and expert costs covered

Subject to your policy’s terms, exclusions, conditions, and applicable limits, Statutory Liability still covers:

• Legal defence costs.
• Expert witnesses and technical reports.
• Representation during investigations and court proceedings.

Does this apply to current RMA cases?

Yes. Even if charges were laid before 21 August 2025, any resource management fines or infringement fees imposed after that date cannot be covered by insurance.

Defence and expert costs incurred during prosecutions, as well as any Court ordered remediation costs (where applicable), will still be covered as per your policy’s terms, exclusions, conditions, and applicable limits.

Why Statutory Liability insurance still matters

While resource management fines and infringement fees can no longer be insured, Statutory Liability cover supports you to:

• Access legal advice and expert witnesses.
• Reduce business disruption during RMA investigations.
• Improve case outcomes and protect your reputation.

Key points for business owners

• Applies to all Statutory Liability policies – new and existing policies affected from 21 August 2025.
• Fines uninsurable – no cover available for any fines imposed after 21 August 2025.
• Defence and expert costs still covered – legal defence, investigation support and remediation (where Court ordered) remain insured.
• Fines significantly higher – up to $1 million for individuals, $10 million for companies/trusts.
• Action required – prevention is your best protection, review compliance and Statutory Liability limits.

Recommended actions for Statutory Liability policyholders

Review your environmental compliance

With siginficantly higher fines, prevention is the best protection.

Talk to your broker

We can review your policy limits and help ensure you’re prepared for the new regulatory environment.

Need advice?

We’re here to help you navigate these changes. Please get in touch with your local Abbott broker to discuss your cover and compliance needs.

Disclaimer
The information in these articles is general information only, is provided free of charge, and does not constitute professional or personal financial advice. We try to keep the information up to date. However, to the fullest extent permitted by law, we disclaim all warranties, express or implied, in relation to this article – including (without limitation) warranties as to accuracy, completeness and fitness for any particular purpose. Please seek independent advice before acting on any information in this article.