Management Liability Insurance and Why You Need It
Whether you are a director of a small business or a larger commercial or corporate enterprise, as a director of a private company and owner of the company itself, you are exposed to a number of risks such as:
- Breaching directors and officer's duties.
- The company breaching a range of laws and regulations. There are over 5000 pieces of legislation that can result in a fine or penalty in Australia – Federal, State, or Industry Specific legislation and over 700 provisions that can find a director personally liable.
- Employment Practices liability (e.g. unfair/wrongful dismissal or harassment by other employees).
- Crime within the business (e.g. employee fraud).
- Tax audit investigation expenses
- Statutory Liabilities (e.g. workplace/OH&S legislation) which can involve criminal prosecutions.
Not only can these risks cause immediate financial ruin, but also exposure to lengthy and costly litigation.
Just the cost of defending a claim, let alone any damages and costs awarded against you based on a simple allegation, can be very costly in terms of time and money.
Management Liability Insurance can protect your business and yourself against most of the financial loss arising from these events.
Management Liability Or Professional Indemnity Insurance?
Many people also confuse Management Liability Insurance and Professional Indemnity Insurance. While both are important if you are running a business, it's important to highlight that they cover very different areas.
Essentially Professional Indemnity covers the activities undertaken in a business and Management Liability Insurance covers the actual running and management of the business.
Whatever the size of your business, we can help you find a business insurance policy that covers all your needs including:
Directors And Officers Insurance
Directors and Officers Insurance is a liability cover protecting the assets of company directors and other individuals involved in the running or management of a business against personal liability claims.
Directors of businesses and organisations undertake duties, responsibilities and obligations that put them at significant financial risk. If you breach a duty or fail to meet an obligation you may be liable to pay compensation, fines or legal costs when claims are made by any number of parties including employees, shareholders, competitors, customers or the company itself.
A Directors and Officers Liability policy insures against personal losses in the event that any of these scenarios eventuate.
OTHER INSURANCE OPTIONS
There are a number of other small business insurance options that it is worth business owners considering, depending on the type of business that you operate. These include:
- Income Protection Insurance
- Company Liability Insurance
- Employment Practices Liability Insurance
- Product Liability Insurance
- Product Recall Insurance
To ensure you have the right insurance cover for your business, talk to one of our expert business insurance brokers and get the peace of mind that you have the right insurance cover, tailored to your specific needs.
Our AIB Insurance Broker firm has vast experience in the complex field of Management Liability Insurance and can provide the cover you need. For an indicative cost of cover, without obligation, please complete and submit the short questionnaire below, we’ll provide a cost of cover quotation to you within 24 hours.