Management Liability

Management Liability Insurance

Management Liability Insurance is a packaged product designed for any small or medium-sized enterprise (SME) structured as a private company or co-operative.

Management liability insurance provides protection against the financial exposures that come with managing a company, helping SMEs and their directors and officers defend, settle or pay compensation claims. A Management Liability insurance policy offers protection for claims made against the company, its directors, and officers. This coverage is especially crucial for directors who also hold ownership or shareholder positions within the company.

Management Liability includes the following coverage sections:

• Directors & Officers Liability

• Company Reimbursement

• Trustee Liability

• Employment Practices Liability

• Investigation Costs Cover

• Statutory Liability

• Tax Audit Costs Cover

• Comprehensive Internal & External Crime Cover

Securing Management Liability insurance is vital for SMEs. While it does not cover physical assets in the conventional sense and is not obligatory, the policy is reasonably priced considering the comprehensive protection it offers against potential losses. This protection is particularly valuable if facing a claim from well-resourced regulators such as ASIC, ACCC, WorkSafe, EPA, etc. The policy covers legal fees associated with a claim, compensatory damages to third parties, and even fines and penalties where legally permissible.

If a director is personally liable for their management actions in running the company, their personal assets could be jeopardised to cover claim-related expenses, which is why purchasing Management Liability Insurance is a must as part of a comprehensive insurance program.