When you’re running a business, you may be personally liable for any actual or alleged breaches of the Corporations Act. It’s not just large companies that are exposed – small and medium business owners and officers could also be at risk.
Management liability insurance covers the costs of defending directors, managers and employees against any claims that are the result of their actions or decisions.
At DKG Insurance Brokers, we understand that the needs of each client are different, therefore we will take the time to assess your individual risk requirements and deliver a bespoke solution. Please reach out to one of our experienced brokers today.
Important note − The information provided is general advice only and has been prepared without taking into account your objectives, financial situation or needs. When making decisions about management liability insurance, please consider the Product Disclosure Statement.
“Management liability insurance is designed to protect the directors and the company against financial losses in the event they are alleged to have not met their duties”
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:
| Type of cover | Potential benefits |
|---|---|
| Employment practice liability | Covers payouts for claims of employment breaches, such as wrongful dismissal, bullying or discrimination. |
| Directors’ and officers’ liability | Protects your proprietary limited company’s past, present and future directors, officers and managers against claims of wrongful acts, such as misrepresentation or breach of duty (subject to business size). |
| Crime | Protects your business against claims such as employee or third party fraud (not all criminal activity is covered). |
| Corporate liability | Covers costs that your business would incur if you need to defend and settle claims from outside parties alleging wrongful conduct as well as investigation into the affairs of the company. |
| Statutory liability | Covers the cost of defence, fines and penalties under some statutes (e.g. work, health and safety). |
| Defence costs | Covers your legal costs if your business ends up in court. |
What usually isn’t covered?
Exclusions and the excess you need to pay can vary greatly depending on your insurer. 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 that we can outline for you.
Important note − The information provided is general advice only and has been prepared without taking into account your objectives, financial situation or needs. When making decisions about management liability insurance, please consider the Product Disclosure Statement.
“Management liability insurance is designed to protect the directors and the company against financial losses in the event they are alleged to have not met their duties”
“Management liability insurance is designed to protect the directors and the company against financial losses in the event they are alleged to have not met their duties”