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.

Management liability insurance covers the costs of defending directors, managers and employees against any claims that are the result of their actions or decisions.

Who should consider it?

If you are faced with unexpected liability costs, management liability insurance can protect your business and personal assets, such as your home, from being sold to cover the cost of paying claims.

Did you know?

Many businesses think it won’t happen to them, but statistics show otherwise. In fact:

• 13,281 is how many claims for unfair dismissal were lodged in 2020-21
• Australian boards spend 55% or their time discussing risk and compliance issues
• 24% is the percentage of frauds at Australian companies that are committed by an employee.

What can it cover?

Management liability insurance policies vary in the benefits they provide. To give you an idea, here’s the type of cover that your policy may include:

• Employment practice liability
• Directors’ and officers’ liability
• Crime
• Corporate liability
• Statutory liability
• Government Inquiry costs
• Defence costs

What usually isn’t covered?

• Generally your policy won’t cover:
• Cyber crime, unless specifically set out in your policy (you can get cover extensions in some cases).
• Employee entitlements.
• Property damage or bodily injury.

There are other exclusions which we can outline for you. Click the Get a Quote button above to take the next step.

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