With changes introduced in 2018, Australia’s Chain of Responsibility (CoR) law has reshaped the accountability landscape in the transport industry. Whether you operate a fleet of vehicles or are a driver, scheduler, manager, or even a loader—the question isn’t just “Do I have insurance?” but “Am I liable?” The CoR law dictates that everyone involved in the transport supply chain can be held responsible for ensuring safety compliance. Here’s what you need to know to stay on the right side of the law.

1. What is the Chain of Responsibility?

Introduced under the Heavy Vehicle National Law (HVNL), the Chain of Responsibility extends accountability across every link in the logistics chain, from point A to point B. Gone are the days when only drivers were liable for safety breaches. Now, anyone involved in the chain—including executive officers, consignors, consignees, packers, and loaders—can be liable for any lapse in safety standards. CoR means that if you influence the transport task, you’re part of the chain of responsibility for ensuring that it complies with the law.

2. Who’s Responsible for Compliance?

The short answer: just about everyone. CoR makes transport safety a collective responsibility. It might be an unrealistic schedule, an overloaded truck, or a vehicle that hasn’t been properly maintained. The examples are numerous, and the conclusion is clear: your actions (or lack thereof) can expose your entire organisation to liability. For example, schedulers who push for faster deliveries might unintentionally encourage drivers to speed, creating legal exposure under CoR. Or a consignor who ignores the weight capacity of a vehicle could face fines or even imprisonment if their negligence leads to an incident.

3. Key Compliance Areas Under CoR

To ensure your business is compliant, you should focus on the following areas:

• Fatigue Management: Ensure drivers adhere to legal work and rest hours to avoid fatigue-related incidents.

• Vehicle Standards and Maintenance: Trucks and trailers should be inspected and maintained regularly to ensure they meet safety standards.

• Load Management: Overloading is dangerous and illegal. Ensuring loads are within legal weight limits is essential.

• Speed Management: Unrealistic schedules can pressure drivers into unsafe driving habits. Schedule deliveries with enough flexibility for drivers to stay within speed limits.

The CoR law doesn’t mess around when it comes to penalties.

4. What Happens If You Don’t Comply?

Breaching these responsibilities can lead to significant fines, suspensions, disqualifications, and even jail time for senior executives and those who fail to ensure safety compliance. 

This isn’t just theoretical: courts have imposed substantial penalties on companies and individuals in the chain who neglected safety. If an accident results in injury or death due to negligence anywhere in the chain, it can lead to severe legal consequences for all involved.

5. How Insurance Can Help—but Won’t Replace Compliance

While insurance can help protect against the financial fallout from CoR violations, it’s not a get-out-of-jail-free card. Statutory or Management Liability Insurance can cover fines and legal fees, but it won’t prevent enforcement action if you’re found to be non-compliant. The CoR law is about proactive management, not reactive defense. By actively managing risk in every phase of the supply chain, companies can reduce the likelihood of exposure while improving safety.

A Final Word

Australia’s Chain of Responsibility law raises the stakes for everyone in the transport supply chain. It’s no longer just the driver who shoulders the burden of compliance—now, the entire logistics team is on the hook for safety compliance. The law is strict and exacting, but it’s ultimately about creating a safer environment for everyone on the road.

Knightcorp Insurance Brokers understands the intricacies of CoR compliance and offers tailored insurance solutions to help transport companies navigate these obligations. From insurance coverage to risk assessments, we’re here to help you build a robust safety net around your operations. Want to know more about transport insurance and protecting your business under CoR? Read our transport insurance guide and get in touch to discuss your coverage needs.

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DISCLAIMER: This information is provided to assist you in understanding the risks, implications, and common considerations for your industry.  It does not constitute advice and is not complete. Please contact Knightcorp Insurance Brokers for further information.