Resource Management Act changes

The Government has passed legislation that, as of 20 August 2025, makes it unlawful for insurers to provide cover for fines or penalties under the Resource Management Act (RMA).

This is a significant change that affects our Statutory Liability Optional Benefit as it means:

  • insurers can no longer cover any fines or penalties under the RMA, even if a claim was lodged and/or accepted before 20 August 2025
  • it’s unlawful for clients to receive any payment in relation to RMA fines or penalties

We can still provide cover for:

  • legal defence costs for unintentional breaches of the RMA
  • remediation costs
  • investigation support.

There are also broader changes to RMA compliance and enforcement, including increased fines for individuals and businesses. You can find more information on the Ministry for the Environment’s website.

The legislation didn't allow for a transition period so our immediate priority is awareness of the change. We'll review the cover under the Statutory Liability Optional Benefit and advise clients in due course.

If you have any questions about your Statutory Liability Optional Benefit cover see our frequently asked questions below or contact us.

We are currently working through this change and our website will be updated as necessary. This page is current as at 28/08/2025.

Statutory Liability Optional Benefit FAQs

  • This optional benefit still provides cover for:

    • Legal defence costs (lawyers, expert witnesses). These can be very expensive, especially with environmental prosecutions involving technical evidence and expert witnesses.
    • Remediation costs. If the Court orders you to fix environmental damage, these costs may be covered depending on the circumstances.
    • Investigation and compliance support. Managing risk and the complexity and cost of RMA compliance and enforcement, and responds effectively to enforcement action.

  • It's too early to say. We might expect legal defence costs to increase in response to this change but we don’t know the impact on your premiums yet.

  • There’s a two-year grace period for the criminal offence of offering or holding insurance for fines. However, the prohibition on insuring fines and penalties took effect immediately upon Royal Assent (20 August 2025). This means any clause in your policy that covers fines and penalties is now void, even if the offence provision hasn’t yet kicked in.

  • This change does not impact other Acts covered by the Statutory Liability Optional Benefit.