Management Liability Insurance
When you're running a business. you may be personally liable for any actual or alleged breaches of the Corporations Act. And it's not just large companies that are exposed - small and medium business owners and officers could be at risk as well.
Management Liability insurance covers the costs of defending directors. managers and employees against any claims that are the result of their actions or decisions.
Why do I need it?
If you are faced with unexpected liability costs, Management Liability Insurance can protect your business and personal assets, such as your home, from being sold to cover the cost of paying claims
Did you know?
Many businesses think it won't happen to them, but statistics* show otherwise. In fact:
The likelihood of a claim that could be covered by a Management Liability policy has tripled in the last five years, with 50% of notifications resulting in a claim.
The most common claims are for employment practices like bullying, harassment and wrongful dismissal.
Major claims by amount relate to crime - including employee fraud.
*Chubb , 2016 Private Company Risk Survey
What can it cover?
Management Liability Insurance policies vary in the benefits they provide. To give you an idea, here 's the type of cover that your policy may include:
Employment practice liability - Covers payouts for claims of employment breaches, such as wrongful dismissal, bullying or discrimination.
Directors and officers liability - Protects your proprietary limited company's past, present and future directors, officers and managers against claims of wrongful acts , such as misrepresentation or breach of duty (subject to business size).
Crime - Protects your business against claims such as employee or third party fraud (not all criminal activity is covered).
Corporate Liability - Covers costs that your business would incur if you need to defend and settle claims from outside parties alleging wrongful conduct, as well as investigation into the affairs of the company.
Statutory liability - Covers the cost of defence, fines and penalties under some statutes (e.g. Work Health and Safety).
Defence costs - Covers your legal costs if your business ends up in court.
What usually isn't covered?
Exclusions and the excess you need to pay can vary greatly depending on your insurer. Generally your policy won't cover:
Cyber Crime, unless specifically set out in your policy (you can get cover extensions in some cases)
Property damage or bodily injury
Would you like to know more?