Stricter environmental penalties under the RMA: What businesses need to know

The Government’s recent amendments to the Resource Management Act 1991 (RMA) mark a significant shift in environmental compliance and risk management. From 21 August 2025, fines for breaches of the RMA have increased dramatically - up to $1 million for individuals and $10 million for companies - and insurance can no longer cover these penalties.

These changes are intended to strengthen accountability by ensuring businesses take responsibility for the financial consequences of non-compliance. Organisations operating in sectors such as property development, infrastructure, farming, forestry, aquaculture, manufacturing, tourism, or waste management should be aware of the potential impact on their operations and insurance arrangements.

What does this mean for your insurance strategy? 

• Fines and infringement fees under the RMA are no longer insurable from 21 August 2025 onward.
• Legal defence costs and remediation expenses remain covered under statutory liability policies.
• Existing policies will only respond to fines imposed before 21 August 2025, regardless of when the offence occurred or the claim was lodged.

Why this matters now 

Insurers have two years to update policy wording, but businesses cannot afford to wait. The financial exposure from non-compliance is now too significant to ignore. This is the time to review your risk management framework, strengthen compliance processes, and ensure your insurance programme is fit for purpose.

How we can help   

The Rothbury Austinsure team is committed to helping clients navigate these changes with confidence. Their expanded Liability team brings deep expertise in statutory and environmental risk, and they’re here to support you every step of the way. Talk to them today or reach out to your Rothbury Broker to discuss what these changes mean for your business and ensure your insurance programme remains fit for purpose.