When you’re running a business, you may be personally liable for any actual or alleged breaches of the Corporations Act. And it’s not just large companies that are exposed – small and medium business owners and officers could be at risk as well.
Safeguarding your business
Company directors and business managers face increasing scrutiny and legal risks in their decision-making. Whether from employees, clients, shareholders, or regulators, claims of mismanagement, misconduct, or breaches of duty can lead to costly legal battles.
What Management Liability Insurance Covers
Management liability insurance is designed to cover the costs of defending directors, managers and employees against any claims that are the result of their actions or decisions.
Directors’ and officers’ liability
Protects your proprietary limited company’s past, present and future directors, officers and managers against claims of wrongful acts, arising from their actions and decisions.
Entity cover
Covers costs that your business would incur to defend and settle claims from outside parties alleging wrongful conduct, as well as investigation into the affairs of the company.
Employment practices liability
Protects the business from claims of employment breaches, such as wrongful dismissal, bullying or discrimination.
Crime protection
Protects your business against claims such as fraudulent or dishonest activities carried out by employees or outside third parties.
Statutory liability
Helps cover the cost of defence, fines and penalties under some statutes e.g. Work Health and Safety (fines and penalties under Work Health and Safety cannot be covered by insurance in NSW, VIC & WA).
Tax Audit
Provides cover for fees, charges of an external Accountant or Registered Tax Agent for work undertaken in connection with an audit or investigation in response to a Tax Audit Notice
Cover at a glance
Protects the directors and the company against financial losses in the event they are alleged to have not met their duties
Cover for legal defence costs and claims
Cover for fines and penalties (excluding Work Health and Safety in NSW, VIC & WA)
Flexible limits to suit your business size and risk exposure
Who needs it?
Any business with employees, a board of directors, or executive officers needs Management Liability Insurance. This includes small-to-medium enterprises (SMEs), private companies, and non-profits. It protects director’s personal assets and the company’s finances from claims of wrongful acts.
Construction, finance
Industries with a dependency on external funding/debt and may have complex shareholder agreements.
Hospitality, retail, pharmacies, healthcare, childcare
Industries characterised by high staff turnover, and a significant proportion of casual or award-based employees tend to experience a greater frequency of unfair dismissal claims.
Manufacturing, mining, transport, childcare & aged care
Industries with a heavy Work Health & Safety (WHS) regulations and education & care regulations.
Real estate, professional services, accounting firms
Accountants, real estate agents, professional services handling sensitive client information
Management Liability Adoption in Australia
Management Liability Insurance take-up among Australian small and medium-sized enterprises (SMEs) has grown significantly.
Increasing claim costs and the implementation of new regulations have underscored the importance of having this cover.
