When you think about protecting your business, you don’t hesitate to take out insurance policies that cover your physical assets and your employees. But what about protection for yourself as the company Director? Unfortunately, many overlook the importance of protecting themselves until it’s too late.
Being the Director, you hold a huge responsibility when it comes to operating your business, protecting your employees and doing right by your clients. Adding to the pressure, the list of things that can go wrong is endless, and most are out of your control.
Accidents and misconducts take place all too often, and are a huge concern, especially for small to medium-sized Proprietary Limited (Pty Ltd) companies. If anything were to go wrong, the financial liability falls mostly on you.
It also doesn’t help that operating effectively in today’s economy has become more difficult with increased rules and regulations.
Below are some of the Acts that businesses must follow:
- The Corporations Act 2001
- Competition and Consumer Act 2010
- The Income Tax Assessment Act 1997
- A New Tax System (Goods and Services Tax) Act 1999
- Privacy and Data Protection Act 2014
- Age Discrimination Act 2004
- Disability Discrimination Act 1992
- Human Rights and Equal Opportunity Commission Act 1986
- Racial Discrimination Act 1975
- Sex Discrimination Act 1984
- Workplace Relations Amendment Act 2008
- Work Health and Safety Act, 2011
- Workplace Relations Act 1996 and Workplace Relations Regulations 2006
Adding to the list, Worksafe Victoria has implemented stricter laws to create safer workplaces. The Workplace Safety Legislation Amendment (Workplace Manslaughter and Other Matters) Act 2019 is now in effect, having commenced on 1 July 2020. Workplace manslaughter is now a jailable offence, prompting many employers to heighten their workplace health and safety measures to prevent severe physical injuries, mental illnesses and worse.
Also, increasing use of technology to process and store personal data has encouraged the Australian Competition and Consumer Commission (ACCC), and the Australian government, to tighten regulation of digital platforms, such as Facebook, Google, Amazon and others. Businesses who utilise these social platforms may unknowingly breach the Privacy and Data Protection Act if they are unaware of the changes.
As regulations become stricter and the risk of breaches becomes higher, the chance of a legal claim made against you or your business from external stakeholders (clients and competitors) and internal stakeholders (employees) will increase.
As a Director of an organisation, you can be held personally liable for breaches made by the company. Therefore, you need to have the right policy in place to reduce the risk of losing your business, your personal assets, and ultimately, your livelihood.
Management liability insurance can protect you and your business from financial loss that may arise from:
- Claims of employment breaches, such as wrongful dismissal, bullying, or discrimination
- Employee or third-party fraud
- Workplace Health & Safety incidents
- Cover the cost of defence, fines, and penalties under some statutes
- Tax audits/investigations
We know your business is important to you, so get in touch with us at East West Insurance Brokers. We can help you find a Management Liability policy to protect you and your business
1800 809 132
email@example.com | www.ewib.com.au
Important Note: All insurance policies have exclusions. Please refer to the Product Disclosure Statement or Policy Wording to decide whether an insurance policy meets your needs.