Management Liability Insurance

Cover at a glance

Provides a packaged solution for many risks that business owners and operators face
Available to a wide range of businesses

Policy Overview

Running a business can expose directors and officers to personal financial risks, especially when faced with allegations of misconduct or breaches of the Corporations Act. Management Liability Insurance provides crucial protection for directors, officers, and the business itself, safeguarding against the financial fallout of actual or alleged breaches. Without this coverage, legal proceedings or fines could threaten both your business and personal assets.

Management Liability Insurance is a comprehensive “package” policy that offers a range of covers that were once only available independently to larger businesses. This type of insurance provides protection across several areas.

These covers are:

Directors & Officers Liability – which defends against allegations of wrongful acts by directors and officers
Employment Practices Liability – which protects against workplace-related claims such as discrimination, bullying, and wrongful dismissal
Crime – which shields your business from internal and external fraud
Corporate Liability – for external allegations of wrongful acts against the company
Statutory Liability – covering fines and penalties under certain statutes

For directors and officers, having Management Liability Insurance can mean the difference between preserving their personal financial assets or losing them to legal actions. The cover not only protects individuals but also offers a safeguard for the business itself, providing peace of mind in an increasingly complex regulatory environment. Whether you run a small business or a larger enterprise, Management Liability Insurance is essential for protecting both corporate and personal assets from the risks associated with managing a business.

The information provided on this page that may have been implied is General Advice only and does not take into consideration your specific needs, risk appetite or financial requirements. Please contact our office to discuss and review your needs and the appropriate financial product best suited to meet your requirements . Before purchasing any financial product, you should always read the Product Disclosure Statement to ensure the product is suitable for your needs.

Frequently Asked Questions

What does Management Liability Insurance cover?

Management Liability Insurance covers a range of risks faced by directors, officers, and the company itself. These include Directors & Officers Liability for wrongful acts, Employment Practices Liability for workplace claims, Crime coverage for internal and external fraud, Corporate Liability for wrongful acts against the company, and Statutory Liability for fines and penalties under specific laws.

Who needs Management Liability Insurance?

Management Liability Insurance is essential for business owners, directors, and officers of companies of all sizes. Whether you're running a small business or a larger corporation, this insurance provides vital protection against personal financial loss resulting from legal actions or regulatory breaches. It is especially crucial for those in leadership positions who could be held personally liable for their decisions.

How does Directors & Officers Liability work within a Management Liability policy?

Directors & Officers (D&O) Liability protects individuals in managerial roles from personal liability in the event of allegations of wrongful acts, such as breaches of duty, mismanagement, or misleading statements. This coverage ensures that directors and officers are defended and indemnified for claims brought against them, helping to protect their personal assets from legal actions.

What is Employment Practices Liability, and why is it important?

Employment Practices Liability covers claims related to workplace issues such as discrimination, bullying, sexual harassment, or wrongful dismissal. These types of claims can be costly and damaging to a company’s reputation. This coverage helps protect your business from the financial impact of employment-related legal disputes, including defence costs and potential settlements.

Does Management Liability Insurance cover fraud?

Yes, Management Liability Insurance often includes Crime coverage, which protects your business from internal or external fraud. This can include employee theft, forgery, embezzlement, or fraud committed by third parties. Having this coverage in place can help mitigate the financial losses resulting from fraudulent activities within your organisation.

What is the significance of Statutory Liability in a Management Liability policy?

Statutory Liability provides protection for fines and penalties imposed under certain laws and regulations, such as workplace health and safety breaches or environmental violations. This coverage ensures that your business can manage the financial impact of regulatory penalties, helping you navigate complex legal requirements without the risk of substantial financial loss.

Related Services

IT Liability Insurance

IT Liability is designed for businesses providing IT services. Cover contains elements of Public & Products Liability as well as Professional Indemnity to address the main exposures that a business in this industry faces.

Professional Indemnity Insurance

Professional Indemnity is mandatory for some industries, but optional for others.

Public & Products Liability Insurance

Public & Products Liability isn’t mandatory but is recommend for all businesses. Losses are generally infrequent but significant.

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