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Management Liability Insurance

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What is Management Liability Insurance Insurance?

Management liability insurance in Australia is a specialised type of coverage designed to protect the management team of a business from personal liability and financial losses arising from their managerial decisions and actions. This insurance addresses the unique risks and exposures that come with running a company, providing comprehensive protection against a range of potential legal and regulatory issues.

In essence, Management Liability insurance provides a comprehensive risk management solution for businesses, safeguarding their leadership and financial stability against a broad spectrum of potential legal and regulatory threats.

Management Liability Insurance

Why Do You Need Management Liability Insurance?

Management Liability insurance is particularly for companies of all sizes, as it helps mitigate the personal and professional risks faced by those in management positions. Even when businesses have consistently positive culture, good business practices, and a great defence team, management risks can never be completely eliminated. Anyone who sits on the board of a proprietary / private company should consider taking out Management Liability Insurance. 

What Does Management Liability Insurance Cover?

The key components of a Management Liability policy are:

  • Directors and Officers (D&O) Liability
  • Employment Practices Liability
  • Corporate Liability 
  • Crime Coverage

Claim types covered by a Management Liability policy could include: 

  • Bullying
  • Harassment
  • Breach of Duty
  • Defamation
  • Discrimination
  • Fraud
  • Occupational Health and Safety
  • Theft by employees or contractors
  • Unfair dismissal
Management Liability Insurance

How Brindabella Insurance Brokers Can Help You

Brindabella Insurance Brokers are highly knowledgeable about Management Liability Insurance Policies and their role in protecting businesses and the livelihoods of owners. We take the time to understand you and your business so we can accurately assess and provide the level of protection you need. Our professional team of brokers only advises in areas we specialise in, ensuring you receive advice that benefits your interests.

Frequently Asked Questions

Employment Practices Liability

This section protects your business against claims brought by employees, regardless of their employment status—current, past, full-time, part-time, or casual. It also covers legal fees incurred in defending against such claims. Employment Practices Liability can protect you from allegations such as harassment, bullying, unfair dismissal, and discrimination.

Crime

Crime Insurance can protect you from internal employee fraud resulting in direct financial loss, such as an employee stealing from your business. It also covers direct financial losses from external third parties.

Tax Audit

Tax Audit Insurance covers the accountant’s fees incurred in preparing documents if you are audited.

Statutory Liability (Fines and Penalties)

Statutory Liability cover protects your business and employees from fines and penalties imposed on your business, for example, in areas like Occupational Health and Safety. It also covers preparation and representation costs.

Superannuation Trustees Cover

Provides protection against claims of mismanaged superannuation funds.

The cost of a Management Liability Insurance policy can vary greatly depending on your exposure. Your industry, turnover, and number of employees are the three main rating factors that determine the price of a policy. The limit of indemnity you choose also affects the cost. A Management Liability Insurance policy is highly customisable, allowing you to include or exclude specific sections of cover and adjust the limits to meet your requirements and budget.

Directors and Officers Insurance has been replaced by the more comprehensive Management Liability Insurance policy. While Directors and Officers Insurance primarily focused on protecting the interests and assets of the directors, Management Liability Insurance extends to protect both the directors and the company from various exposures they may face.

A Management Liability Insurance policy is designed to guide you through, mitigate, and reduce exposures against your business. With insurers and their panel of legal experts supporting you from start to finish, you will have peace of mind that the support you receive will provide the best possible outcome. Remember, your policy is on a “claims made” basis. This means you need to notify your insurance company when the issue first arises to ensure your claim will be covered. Delaying notification could result in reduced or no cover.

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