Management Liability is an important addition to a business’s overall risk management and insurance portfolio.

What is Management Liability?

Management Liability insurance covers a wide range risks, which arise from actions and decisions of directors, officers and managers while running a business. Improper conduct such as sexual harassment, unfair dismissal or defamation are some examples of risks which can be covered.

Because the breadth of risks covered by Management Liability is broad, it’s sold as a package of separate covers. Each cover addresses a different risk. Your broker will review your business and suggest the most appropriate management liability for your business.


Management Liability insurance includes the following covers:

  • Directors and Officers Liabilities – this provides insurance cover for company mismanagement which results in legal action against directors or senior managers.
  • Corporate Liability – covers the company should it need to pay a director or officer due to a claim of mismanagement.
  • Employment Practice Liability – provides insurance for areas such as wrongful or unfair dismissal, harassment, discrimination etc.
  • Statutory Liability covers risks resulting in fines or penalties as a result of a law or regulation being broken eg. Workplace health and safety or privacy laws.
  • Crime Protection covers the business against losses due to employee and external theft and crime.


This product is specifically designed for small to medium sized private company or co-operative. If you employ staff, then at a minimum, Employment Practice Liability should be a serious consideration.

Ignorance of the law is no excuse – so protection is important.

It can be difficult to keep abreast to changes in laws and regulations relating to businesses, but ignorance is no excuse. Small businesses are exposed to legal and regulatory risks and ensuing fines from government or industry regulatory bodies.  These fines can reach hundreds of thousands, or even millions of dollars. Even if prosecution does not result in a fine, defending litigation can be financially crippling.

If you haven’t reviewed your business insurance for a while, now is a great time to do so. To discuss all of your management liability cover needs, contact your AIB broker today.

Important notice – Steadfast Group Limited ABN 98 073 659 677

This general information does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with your Steadfast insurance broker as to whether these types of insurance are appropriate for you. Deductibles, exclusions and limits apply. These insurances are issued by various insurers and can differ.