Published: 2 March 2026
RMA reform in practice: what businesses need to get right in 2026
2026 is the first full year operating under the amended Resource Management Act (RMA), and while many businesses are aware that fines have increased and are no longer insurable, the practical implications are only now beginning to surface. With maximum penalties of up to $1 million for individuals and $10 million for companies, and insurance no longer permitted to cover these fines, the risk environment for environmental compliance has fundamentally shifted.
Rather than simply understanding what changed, businesses now need to focus on how to operate differently under this new enforcement landscape.
Under the previous regime, many businesses viewed RMA exposure as partially transferred through insurance. That safety net is gone. Since 21 August 2025, fines and infringement fees cannot be insured. Defence and remediation costs may still be covered depending on your policy. This means environmental compliance is no longer a “regulatory admin” issue - it is a material financial risk that boards and executives need visibility over.
In an investigation, being able to demonstrate due diligence makes a meaningful difference. Up-to-date monitoring logs, contractor records, training documentation, and evidence of consent compliance help demonstrate that the business took all reasonable steps to prevent harm.
Every organisation should consider reviewing where its highest RMA risks sit: which activities carry consent obligations; where breaches are most likely; what a worst-case fine could mean; and whether monitoring and controls are sufficient. These changes are especially relevant for industries such as property development and farming, through to manufacturing, aquaculture, waste services, tourism, and infrastructure - sectors with higher exposure to consented activities.
Many RMA breaches arise indirectly - through subcontractors, earthworks providers, waste handlers, or maintenance contractors. Under the amended regime, businesses can, in some circumstances, be held responsible. Clear onboarding, training, expectations and monitoring for high-risk contractors should be part of environmental compliance in 2026.
With fines uninsurable, rapid containment and effective remediation are critical. Each site should know how to respond in the first hour, who engages with regulators, and what reporting obligations apply. Well-practiced plans can help reduce environmental harm and support better enforcement outcomes.
In 2026, focus on whether your liability programme still reflects your actual exposure: Are your Statutory Liability limits appropriate for potential defence and remediation? Do your operations justify Environmental Impairment Liability (EIL) cover? Are activities across all sites properly disclosed? Do you need support to better understand your environmental risk profile?
How Rothbury can support you
RMA reform increases both the stakes and the complexity of environmental compliance. Your Rothbury broker can help you review exposures, consider appropriate liability limits, and connect you with specialists who can assist with compliance, consent reviews and environmental risk management — helping your business be prepared for the realities of operating in 2026.
This guide provides general information only and does not constitute financial or legal advice. Please consult your broker or professional advisor for guidance specific to your business.