Management Liability Insurance
If you’re running a business, large or small, there is a risk that you may find yourself personally liable for any company breaches of the Corporations Act-
Management Liability Insurance aims to cover the costs of defending Directors, high and low-level managers and employees against any claims that are the results of any individual’s decisions or actions.
Many companies, their directors and senior managers unwittingly allow themselves and their personal assets to be exposed to potentially devastating litigation, mistakenly believing that their public liability or professional indemnity insurance extends to protect them in the event of legal claims against themselves and the company.
Furthermore you might consider an action taken by a third party is baseless, however dealing with a dispute means obtaining legal advice which often results in significant costs. Defence and investigation costs alone can be financially crippling for businesses and individuals and without adequate protection you could risk losing not only your business but also your personal assets.
Why You Need Management Liability Insurance?
Should you ever be faced with unexpected liability costs, Management Liability Insurance can, in many cases, work to protect your business and personal assets from being sold to cover the cost of financial claims.
Importantly a tailored insurance policy is available to cover not only your business balance sheet but also your personal assets. Management Liability Insurance is designed to cover Privately owned companies. These companies and their directors, officers and employees are exposed to the legal consequences of unintended errors arising from their daily actions. The companies also face the potential exposure of financial loss caused by employee dishonesty and similar conduct.
What is Covered/Types of Cover
Directors & Officers
Kidnap & Ransom
What Isn’t Covered
Please note that exclusions can vary greatly depending on the insurer and the product. Generally, however, you’re policy won’t cover
- Cyber Crimes (unless specifically stipulated in your policy conditions) Look for cover extensions when discussion your plan or simply ask your broker
- Employee entitlements
- Property damage
- Bodily injury
Did you know:
- Over 750 state and territory laws exist in Australia that impose personal liability on directors?
- 15,000 unfair dismissal cases brought against small businesses in the last 12 months?
- The implementation of the new Work Health and Safety provisions impose strict liability fines and penalties on employers, employees and ‘workers’?