In short you are covered if something out of your control inadvertently puts you into a situation that requires you to break a law. However you can not push on into known weather, or through a known flock of birds, fly with known aircraft issues that could affect safety, and expect to be completely exonerated. If during the Investigation there is evidence of criminal or negligent behavior then that info may/will be passed on to law enforcement agencies to look into. If you are found to have contributed to the situation in some manner that's less than criminal or pure neglect then civil action may be available to those physically or financially affected. The ATSB may not concern themselves with legal matters, but if the report hints you created the problem then the lawyers will use that information to dig. Advice = Stay away from legal grey areas, operate well within the law, take being PIC seriously.
I’m just trying to explain how the regulatory regime works (and stay sane), in response to the OP's 'simple' question. Nearly 40 years in, none of the above has ever bothered me when I’m flying. As the earlier poster said: “I have no hesitation in confidently exercising the full privileges of a PIC”. None of the above matters. Until it does.
And same with me, the legal burden does not bother me at all, because it only applies if you 'sail too close to the wind'. The road is far more of a legal minefield. And most of us will speed, rush around pushing yellow lights, even use the phone whilst driving at some point, and if you happen to crash in any of those scenarios and injure somebody you could be in a world of legal hurt. Luckily in Australia the road system has the TAC and strict insurance requirements or it would be very nasty for many. I've been involved in a number of aviation incidents, none of which have gone beyond ATSB interest. However I do know a few unlucky souls that have made simple mistakes, that could easily have been avoided and ended up with large financial burdens.