Management Liability Insurance

Peace of mind and confidence to grow your business.

Management Liability Insurance

Directors and Officers of small to medium sized privately owned businesses (SMEs) have a large responsibility when it comes to running a business properly and looking after the staff. But sometimes things go wrong and it is often out of your control. Claims against you and your company can include fraud, harassment, bullying, unfair dismissal, discrimination, OH&S penalties, and defamation, just to name a few.

Management Liability Insurance gives you peace of mind and confidence to grow your business, knowing that your personal assets are protected against legal liabilities brought against you personally through managing a business.

Claims can be made against you by employees, competitors, shareholders, and clients, and if you don’t have the right cover you could potentially lose everything (not only your business but also personal and family assets).

So what is the difference between Management Liability Insurance and Professional Indemnity Insurance I hear you ask?

  • Management Liability covers you against allegations you mismanaged your company,
  • PI protects you against claims regarding professional advice or services you provided.

Who needs it

  • Those who sit on the broad of a privately owned company or any business.

Covers that are typically included

  • Directors and Officers Liabilities – protects directors and officers for claims of wrongful acts (e.g. fraud),
  • Employment Practices Liabilities – covers the company, directors, officers and employees for claims made by employees (e.g. bulling, unfair dismissal),
  • Statutory Liabilities – covers individuals and the company for fines from operating the business (e.g. OH&S fines),
  • Civil cover – covers the company for loss from dishonest acts (e.g. theft, fraud),
  • Corporate Entity Liabilities – Cover for management allegations such as fraud and shareholder disputes.
  • Representation costs of attending an inquiry or investigation regarding company affairs,
  • Management costs associated with investigations, such as tax investigation, public relations and crisis management.
  • Penalties awarded against companies and its directors or officers for work health safety breaches have increased by 43% to $22.3 million in one year. Penalties now average $62,000 per company.

    Safe Work Australia, Key Work Health Safety Statistics 2014

Confused? Don’t worry, that’s what we’re here for.
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