Despite a broad consensus that society owes an ethical obligation to compensate for research-related injury, and that no-fault is the best ethical response, the compensation arrangements in place in commercially sponsored clinical trials in New Zealand fall below this ethical expectation. While injured participants in publicly funded research have access to legally enforceable and appropriate compensation under the no-fault accident compensation scheme, those injured in commercially sponsored trials do not. They must either bring a negligence action against researchers and/or sponsors, with very low chances of success, or rely on compensation provided in accordance with industry guidelines adopted from the United Kingdom. The key deficiency of these guidelines is that a sponsor’s obligation to pay no-fault compensation is not legally enforceable by an injured subject, who is vulnerable to being uncompensated or undercompensated as a result. It is also likely that, given significant deficiencies in the information given to potential subjects recommended by ethics committees, subjects will only find out about their financial exposure when submitting a claim for injury. The article considers options for injured subjects, ethics committees and Government for addressing this worrying situation, as well as for maintaining effective incentives on commercial sponsors to conduct safe clinical trials involving humans.