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Whether you are a new business looking to put a management liability insurance policy in place or you have a policy and looking for a better deal, we have you covered.
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Professional
tailored advice
Competitively
priced policies
Comprehensive
cover options
What you need to know about
Management Liability insurance provides a broad level of cover for your company and has various sections of cover. Most business owners only look at covering physical assets of a business like equipment, stock and office fitouts and fails to consider having cover for the decision makers of the business and their personal liability.
A Management Liability policy will usually have the following sub-sections; Directors and Officers Liability, Employment Practices Liability, Tax Audit, Crime and Statutory Liability plus other sections that may be able to be added depending on the policy. Most businesses consider external claimable events that could arise outside of the business however, there are significant exposures inside your business operation that could arise.
An employee approached their HR team and made allegations that his manager is bullying him. They alleged that the manager was bullying him by belittling, excluding him from team activities and intimidating him while he was at work. The employee made a claim to Fair Work and took his employer to court. The employer was able to successfully lodge a claim under his Management Liability insurance were the legal costs and the cost to compensate the employee was covered.
Along with most other liabilities allegations and claims continue to rise and with ‘no win, no fee’ solicitors readily available it is extremely easy for a claim to be made against your business. A claim will usually be lodged as an allegation against your business and from that point it is up to you to defend those allegations. Whether you are right or wrong, the minute an allegation is made is when costs can start increasing significantly.
Need a Management Liability Insurance Broker? We've got you covered.
We understand that running a business takes a lot of work and as a business owner you’re expected to be across all of the different aspects of your business operation. We have tried to make our process as simple as possible and all of our Brokers work with each business owners to have a strong understanding of your business and whats required to be in place to ensure that there are no nasty surprises. We pride ourselves on not hiding behind the fine print.
Employment Practices Liability covers your liability to your employees as an employer. In Australia we have governing bodies that enables employees to lodge claims against you if they believe they have been treated unfairly.
Directors and Officers are making decisions about the business on a regular basis. Directors and Officers are still human and still make mistakes. Unfortunately, mistakes still lead to potential consequences or a financial impact your company.
Companies provide their staff with access to bank accounts and other financial information which could lead to the information being misused. We have scene crime claims occur all the way from Directors to new employees of a business.
Should an audit be served by the ATO it is likely that your Accountant will request additional payments to cover their professional fees for managing the information requested from the ATO in order to confirm compliance. This cost could be small or could be quite substantial depending on the size of the audit.
Once an allegation is made against you a legal demand can be presented. This could also be presented against you to no financial outlay from the claimant however, as a company defending the matter your solicitor will usually start charging you from commencement of the defence. An ML policy will usually also provide an allowance for Directors, managers and staff court attendance costs
Depending on the fine and penalty that is issued, a management liability policy can provide you with cover against these fines and penalties provided that they were not deliberate and are within scope of cover outlined in the policy.
Should an audit be served by the ATO it is likely that your Accountant will request additional payments to cover their professional fees for managing the information requested from the ATO in order to confirm compliance. This cost could be small or could be quite substantial depending on the size of the audit.
Once an allegation is made against you a legal demand can be presented. This could also be presented against you to no financial outlay from the claimant however, as a company defending the matter your solicitor will usually start charging you from commencement of the defence. An ML policy will usually also provide an allowance for Directors, managers and staff court attendance costs
Depending on the fine and penalty that is issued, a management liability policy can provide you with cover against these fines and penalties provided that they were not deliberate and are within scope of cover outlined in the policy.
There is cover under a management liability insurance policy which can cover all business owners. We usually recommend a policy to business owners that meet the following criteria:
This is a broad recommendation however, when you have staff and also operate as a company you will have access to almost all sections of the policy.
This is hard to answer however, a policy can usually be purchased for as low as $500 and will increase from there. Taking into consideration that most policies will also usually include a 1 hour free consultation with one of the insurers panel lawyers – just this alone could potentially cover the cost of your policy.
When determining what limit you should put in place will come down to what potential impacts a claim could have on your business. A larger company will usually have a higher limit as a claim could lead to significantly higher costs. Most ML policies will also attach specific sub-limits to certain sections so it is important to also review these limits before putting a policy in place.
An ML policy will add another layer of protection between a company and the Directors personal assets. For example, if a claim was presented before the courts and a fine was handed down, the policy will usually respond and cover the associated costs. If a policy is not in place than the fine would be passed on to the Directors and if unable to pay than personal assets can be receovered against.
Most business owners don’t have a policy in place and they should. So a simple answer to this is now. However, most potential impacts to your business could take some time before a claim is bought against you and as such you should consider putting cover in place straight away.
Management Liability Insurance is similar to Public Liability insurance premiums where there are a number of different factors that make up the final premium that is paid. These factors typically include:
No, it’s not compulsory at all. We strongly recommend that clients consider this risk as there are a number of sections that a Management Liability insurance policy covers which are vital to your business and if not covered could have a severe financial impact to your business.
A Management Liability policy provides cover to your business for Directors, Officeholders, Managers and decision makers in the business for negligent acts that lead to a claim. We have further information below with relevant sections that are covered under a typically policy.
No, they are 2 very different policies. Public Liability insurance will only cover you for personal injury or property damage. Management Liability insurance will usually cover things like:
Why should you use Priority Insurance Brokers to arrange your Management Liability Insurance?
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