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.
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.
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.
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 should you incur legal costs. The following benefits in this policy may include:
• Covers pay-outs for claims of employment breaches, such as wrongful dismissal, bullying, or discrimination
• 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)
• Protects your business against claims such as an employee or third-party fraud
• Covers costs that your business would incur if you need to defend and settle claims from outside parties alleging wrongful conduct, as well as an investigation into the affairs of the company
• Cover the cost of defence, fines, and penalties under some statutes
• Covers your legal costs if your business ends up in court
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.
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. Talk to us today to learn more:
P: 1800 809 132
*Please note all insurance policies have exclusions. Please refer to the Product Disclosure Statement or Policy Wording before deciding whether the insurance policy meets your needs.