Management liability insurance covers the costs of protecting directors, managers and employees of a company against claims as a result of their actions or decisions. When you’re running a business, you’re personally liable for any actual or alleged breaches of the Corporations Act. Often, many would believe that only large companies are exposed to these risks. However, the risks are just the same for small and medium-sized business owners.
This coverage can help to protect your business and personal assets, such as your home from being sold to cover the costs of an unexpected claim.
Learn how EWIB can help you
As a director or officer, you hold a huge responsibility to ensure you run your business effectively and look after your employees. But, should anything go wrong, it’s often out of your control. Claims can be made against you by competitors, employees, shareholders and clients. If you don’t have the right amount of coverage in place, you could potentially face financial difficulties.
We can work with you to provide the most suitable insurance cover to refrain you from spending your own money should you incur legal costs.
Our brokers have years of solid experience to guide you through the options of management liability insurance and can help you find the best solution for your situation. The policy can extend to cover directors & officer’s liability, employment practices liability, statutory liability, crime cover, corporate entity liability, legal representation costs, tax investigation, public relations and crisis containment.
Why Is Management Liability Insurance Important?
The likelihood of a claim that could be covered by management liability policy has tripled in the last five years, with 50% of notifications resulting in a claim. The size of the business isn’t necessarily a deciding factor in whether a claim is likely or not to be made, rather in the business interactions with internal and external stakeholders.
When thinking about the potential exposures of a business, we tend to only think about the risks associated with the products or services that businesses provide. However, due to highly regulated and controversial business environments, it’s extremely important to consider liabilities that may arise from managing a business.
At East West Insurance Brokers, we can help protect you and your business against such exposures through management liability insurance. We’ll ensure you’re aware of the potential risks that may stand in your way and how you can protect yourself and your business against legal liabilities.