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RegulationCover4You Editorial3 August 2026· 5 min read

Health & Safety at Work Amendment Act 2026: What It Means for Your Insurance

The Health and Safety at Work Amendment Act 2026 received Royal Assent on 9 July 2026 and takes effect 1 April 2027. Here's what the new critical risks framework means for businesses and their public liability cover.

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The Health and Safety at Work Amendment Act 2026 (the Amendment Act) received Royal Assent on 9 July 2026 and will come into force on 1 April 2027. The changes represent the most significant update to workplace health and safety law since the original Health and Safety at Work Act 2015 (HSWA) — and they carry direct implications for public liability insurance across a wide range of industries.

Background: Why the Amendment Was Introduced

New Zealand's workplace injury and fatality rates have remained persistently high since the HSWA came into force. WorkSafe New Zealand and the Ministry of Business, Innovation and Employment identified that many businesses were applying generic hazard management processes to all risks — treating a loose carpet with the same procedural weight as asbestos removal or working at height. The Amendment Act introduces a tiered "critical risks" framework designed to focus the highest scrutiny on activities most likely to cause fatalities or serious harm.

The Critical Risks Framework

From 1 April 2027, businesses with one or more designated "critical risk" activities must comply with enhanced obligations that go beyond the current good-faith duty to eliminate or minimise risks. The key features are:

  • Mandatory critical risk registers — PCBUs (persons conducting a business or undertaking) with critical risk activities must maintain a documented register, reviewed at least annually and after any relevant incident.
  • Enhanced board-level accountability — For companies with 20 or more employees, at least one officer (director or senior manager) must formally certify annually that the critical risk register is accurate and that controls are being applied.
  • Prescribed control hierarchies — For activities involving working at height, confined spaces, hazardous substances, and mobile plant, the Amendment Act replaces the general HSWA hierarchy of controls with prescribed minimum standards developed by WorkSafe.
  • Notifiable critical risk failures — A failure of any prescribed control (for example, a safety harness not being used during work at height) must be notified to WorkSafe within 24 hours, even if no injury occurs.

Which Industries Are Affected?

WorkSafe has published an indicative list of activities that will be designated as critical risks in regulations to be finalised before April 2027. These include:

  • Work at height above 1.5 metres (construction, maintenance, roofing, scaffolding)
  • Excavation and trenching work
  • Work involving asbestos or other hazardous substances
  • Operation of mobile plant including forklifts, cranes, and excavators
  • Confined space entry
  • Electrical work on live equipment
  • Work in proximity to road traffic

For the construction, trade, and civil engineering sectors, this covers the majority of day-to-day work.

What This Means for Public Liability Insurance

The Amendment Act does not mandate public liability insurance — but it changes the risk environment in ways that make coverage more important, not less.

Stricter Duty of Care Creates Greater Liability Exposure

When WorkSafe regulations prescribe minimum control standards, a failure to follow them creates a much clearer paper trail of negligence. If your scaffolding company does not comply with the prescribed scaffolding safety standard and a third party is injured, the claimant's lawyers will have a straightforward argument: you knew the standard, you failed to apply it, and someone was hurt. This increases the likelihood that liability claims will succeed and reduces the scope for a "reasonable steps" defence.

Critical Risk Failures Are Notifiable — Records Matter

The new 24-hour notification requirement for critical risk failures means WorkSafe will have a database of control failures across NZ businesses. If a business has a prior notification on record and is subsequently involved in a third-party injury claim, that record will be discoverable and potentially admissible. Businesses with a pattern of notified failures will face higher premium assessments at renewal.

Cover Limits Under Review

Some insurers have already indicated that the Amendment Act will prompt a review of cover limits for high-risk trades. Businesses that currently hold $2M in public liability cover may find that their insurer recommends $5M from April 2027, particularly if they work in commercial environments or regularly enter client sites. It is advisable to speak with your insurer before the end of 2026 to confirm that your cover levels will remain appropriate under the new framework.

Steps to Take Before April 2027

  • Identify your critical risk activities — Review WorkSafe's guidance as it is published and map your operations against the critical risks list.
  • Start building your critical risk register now — Even though the legal requirement is April 2027, early implementation reduces the risk of gaps at the commencement date.
  • Review your insurance coverage — Confirm that your current public liability limit is appropriate for your risk profile under the new framework.
  • Brief your officers — If your company has 20 or more employees, ensure your directors understand the annual certification obligation and what they will be signing off on.
  • Review your contracts — Many commercial contracts require compliance with "applicable law." From April 2027, the Amendment Act's obligations will be applicable law. Non-compliance could void contract protections as well as affect insurance cover.

Conclusion

The Health and Safety at Work Amendment Act 2026 is not just a procedural update — it marks a meaningful shift in how the law treats workplace risk management. For businesses in construction, trades, and any sector with hands-on physical work, the changes increase both the compliance burden and the potential liability exposure. Reviewing your public liability insurance now, before the April 2027 commencement, puts you in the best position to manage that exposure effectively.

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Cover4You Editorial

Insurance Specialist · Cover4You

The Cover4You team are committed to making public liability insurance transparent and accessible for all NZ businesses. Our advisers hold relevant NZ insurance qualifications.

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