Palladium Management Liability Insurance

Policy Information

 

What is management liability?

 

Management Liability Insurance not only protects Directors & Officers for legal liability they may incur personally in managing a corporation, it also extends to the corporation itself for certain types of claims. The most common form of incorporated entity to which Management Liability Insurance is offered is the proprietary company. The primary rationale behind extending cover to proprietary companies beyond the realm of a traditional Directors & Officers Insurance policy is that protecting the assets of the private company for many Directors & Officers is protecting significant ownership in those assets through their personal shareholding.

Directors & Officer may be exposed to claims brought against them by:

»  Shareholders (ie.statutory derivative actions)

»  Employees (ie. claims for wrongful dismissal, harassment or wrongful failure to employ or promote)

»  Statutory bodies (ie. actions brought by the Australian Securities and Investments Commission involving alleged     breaches of a directors fiduciary duties or investigations commenced by WorkCover following a work incident)

»  Competitors (ie. allegations of conduct involving anticompetitive behaviour)

»  The Corporation itself (ie. actions brought by a liquidator on behalf of the company alleging insolvent trading)

Management Liability Insurance will generally cover the following amounts in relation to the above actions:

»  Representation costs where a Director or Officer is legally required to attend an inquiry or investigation relating to the     affairs of the corporation

»  Legal costs and expenses in the defence and investigation of a Directors and Officers claim

»  Any compensation required to be paid by the insured in order to dispose of a Directors & Officers claim

Actions against the corporation or losses sustained by the corporation generally covered by a Management Liability policy include;

»  Employment practices liability claims

»  Representation costs in respect of an occupational, health & safety investigation

»  Direct Financial Loss

Insuring Clauses and Automatic Extensions Under the Palladium Wording

Insuring Clauses

»  Directors & Officers Liability

»  Company Reimbursement

»  Company Liability - employment practices liability

»  Superannuation Trustee Liability

»  Company Liability - in addition to employment practices liability

»  Direct Financial Loss of Company (up to $500,000 sub-limit)

»  Advancement of Defence Costs (including Emergencies)

 

Automatic Extensions

»  Dedicated Excess Limit for Non-Executive Directors

»  Inquiry Costs

»  Occupational Health & Safety Defence Costs

»  Pollution Defence Costs ($500,000 sub-limit)

»  Pecuniary Penalties (up to $5,000,000 sub-limit)

»  Continuous Cover

»  Restrictive Trade Practices Defence Costs

»  Direct Financial Loss Additional Expenses ($100,000 sub-limit)

»  Intellectual Property

»  Defamation

»  Crisis Management Fees ($50,000 sub-limit)

»  Extradition-Related and Public Relations Costs ($25,000 sub-limit)

»  Heirs, Estates and Legal Representatives

»  Discovery Period

»  Retirement Cover - 12 month period

»  Subsidiaries

»  Subsidiaries Run-Off Cover

»  Spousal Cover

»  Outside Directorships

Important Note: Statements about the policy are a summary of cover only and do not constitute adivce in relation to the policy. For full details of terms and conditions please review the policy wording in full.

 

More information for brokers:

•  Return to the Palladium main page

•  Download the above Palladium Policy Information as a PDF Document

 

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