As a Director or Officer, there is pressure to run your business properly and meet the needs of all stakeholders. This includes partners, employees, clients and shareholders. If a claim is made against you and you are not covered, you leave yourself at risk of losing not only your business but your personal and family assets too.
At Coverforce, we understand the risks associated with running a company. Our experienced insurance brokers and in-house claims team will work hard to deliver personalised risk advice and a smart, cost effective Management Liability Insurance policy to meet your needs.
What is Management Liability Insurance?
Management Liability Insurance protects the personal assets of Directors and Officers against legal liability that can be brought against you personally through managing a business.
Do I need Management Liability Insurance?
You should consider taking out Management Liability Insurance if you sit on the board of a proprietary/private company or any business.
The likelihood of something happening is unpredictable and the associated legal fees that can arise when an incident occurs can be financially crippling. That is why it is important to make sure you are adequately covered.
Claims against you or you business could include:
- Breach of Duty
- Occupational Health and Safety
- Theft by employees or contractors
- Unfair dismissal
What does this Insurance cover?
Management Liability Insurance is popular for Propriety/Private companies and will typically include the risks outlined below.
Please note Management Liability Insurance includes Directors and Officers Insurance.
For each risk included in your policy you will generally be covered for:
- Damages and claimant costs awarded against you
- Legal costs
- Investigation costs
- Civil fines and penalties
- Representation costs where you are legally required to attend an inquiry or investigation regarding company affairs
Directors and Officers Liabilities
Protects past, present and future Directors and Officers plus anyone else involved in the management of a company for claims of wrongful acts. Claim examples include unfair competition, fraud, manslaughter and insolvent trading.
Employment Practices Liabilities
Covers the company, Directors, Officers and employees for claims made by current, past and future employees. Claim examples include bullying, harassment, unfair dismissal and discrimination.
Covers individuals and the company for fines from operating the business including workers compensation and occupational health and safety fines. Claim examples include OH&S fines, environmental fines and civil penalties.
Covers the company for loss from dishonest acts including theft and fraud by your employees.
Corporate Entity Liabilities
Covers the company for mismanagement allegations such as fraud and shareholder disputes. This is extremely important for companies owned by Directors involved in the business because a claim made against the company is often also made against the owner or Director. Claim examples include wrongful acts, fraud and shareholder disputes.
- Please note that not all liabilities by a Director or Officer impact the company itself.
- Managers and employees can also be liable in addition to Directors and Officers.
- Directors and Officers are often unaware of their full regulatory responsibilities due to the constantly changing environment.
- Management liability Insurance covers you against allegations you mismanaged your company.
- Professional Indemnity Insurance protects you against claims from clients and third parties regarding professional advice or services you’ve provided.
To find out more, visit our Professional Indemnity Page.