Management liability insurance protects directors, officers and the insured company itself from the many risks relating to the management of a company. Owners and those responsible for the management of a company have specific responsibilities which can result in personal liability for alleged or actual wrongdoing.
Rightly or wrongly accused, allegations of wrongful acts against management can include:
Management liability insurance aims to protect your company and its directors and officers from financial loss (including defence costs) if allegations of wrongful acts are brought against it.
Management liability covers the following situations:
Management liability insurance is broken down into multiple types of liability covers, which can be tailored to suit your business needs. These insurance products include:
Directors and Officers liability offers financial protection for the personal assets of corporate directors and officers if a third party sues them in relation to the performance of their duties. Any company with a board or committee should consider this type of insurance. Directors and Officers insurance can help protect against the following:
Corporate liability financially protects a company against wrongful acts committed by the company itself. It may also cover claims against a lack of action taken by a company. Corporate liability can provide financial coverage in the event of:
Employment practices liability provides financial protection against employee-relation claims both by and against employees. This is financial protection against allegations of bullying, sexual harassment, unfair dismissal and discrimination.
Statutory liability generally covers penalties and fines if a company unintentionally breaches a law imposed by the government or a regulatory body. This type of insurance offers financial protection against a breach of the Occupational Health and Safety Act (2011) or a licensing breach.
This type of insurance protects against financial loss due to theft of money or other wrongful acts such as fraud or dishonesty by a business’ employees (including managers) or in collusion with a third party.
Whether your business needs management liability insurance depends on your business’s individual needs and circumstances. This type of policy can be crucial in safeguarding your company against legal costs incurred in defence against alleged or actual wrongdoing.
Remember: You can just choose the types of management liability insurance coverage that your business will most likely need.
Management liability insurance may not cover certain civil fines, penalties and legislative breaches including events like:
Always remember to read your policy’s Product Disclosure Statement (PDS) to understand what you are and aren’t covered for.
Aside from management liability insurance, other types of business insurance can protect your business and its assets – and may also cover legal fees and compensation costs.
These types of business insurance policies include:
When using our online comparison service, you’ll be required to enter the following details:
It’s essential to provide all the information you can about your business and its services.
You must disclose any past claims made against your business or circumstances which may result in a claim to your potential insurer. Any intentional or even unintentional omissions of prior claims could invalidate your cover.
Any company (whether a large or small business) with a management team that wishes to protect its assets against possible litigation costs would benefit from management liability insurance. Like all insurances, think of management liability insurance as a financial safety net should anything go wrong.
Business insurance (including management liability cover) is available to all types of organisations, from not-for-profits to private companies.
Your business’ size, type and other key variables will influence the level of management liability insurance you require. When you compare policies through our service, we ask you to provide this information and you can select from a range of cover options.
Suppose a claim is made against one of your companies’ managers or directors, and you don’t have the appropriate level of cover. In that case, you’ll be responsible for the defence costs and any payouts (if it gets to that point).
It depends on a range of variables, including your business type, the size of your business and whether you’ve had any previous claims or incidents. Use our free online comparison tool to get some quotes and review policy limits, features and exclusions.
The higher you are, the further you could fall, and nobody wants to fall without a proper safety net.
If you’re ready to invest in a cost-effective management liability insurance policy, compare business insurance policies online with us today. In minutes, you can compare a range of policy quotes from some of Australia’s top insurers. When it comes to protecting all you’ve worked hard for, it pays to compare.
*As with any insurance, the different types of business cover will be subject to terms, conditions and exclusions specific to your policy wording or Product Disclosure Statement (PDS). This information is general in nature and not intended as professional business advice.
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