Management Liability insurance protects a business and individuals from the financial exposures related to running a company.
Who needs it?
Small-medium enterprises (SMEs) who employ staff, particularly those with $500,000+ turnover
Did you know?
- In the past five years, the likelihood of a management liability claim has tripled
- The most frequent type of management liability claim is for Employment Practices
- The most expensive claims are for fidelity (employee theft)
What do Management Liability policies generally cover?
Management Liability – There are some big risks involved with being a company director, partner or trustee. Directors are subject to onerous duties and responsibilities – and if someone thinks they have not lived up to them – rightly or wrongly – then they can be in for serious legal action.
Employment Practices Liability – What if you were accused of unfairly dismissing any employee or discrimination of an employee, would you be able to come up with the legal costs to defend yourself? Workplace bullying whether it is physical or on social media is also becoming a common place for action against companies and directors.
Employee Theft – Did you know that standard money and theft insurance policies don’t cover you if an employee committed the theft? If your business has cash, contents or stock then the temptation is there. Whether the theft is from a one-off event or over a long period of time, this policy will cover you for these type of events.
Statutory Liability – What if a governing body fined your business for a breach. For example, if you are operating a hotel and the Liquor Licensing department fined you as the Licensee for serving an intoxicated patron then the fines would be picked up by having this policy.
How much does it cost for Management Liability Insurance?
The simple answer is not as much as you think. Policies start from around $1,250 and is a must have considering the environment in which we do business today. Ask yourself can you afford not to have this cover?
Watch out for high excesses
Management Liability policy excesses can be quite high, so it’s important to get quotations from a number of different insurance companies to ensure that you not only get comprehensive coverage but also competitive premiums and excesses. Matrix Insurance has access to over five different specialised Management Liability insurers, allowing us to provide our clients with right policy at the best price.
Unfortunately, sole-traders or partnerships are unable to take out a management liability policy – you must have a company structure and hold a current ABN.
For more information or to get a quote for Management Liability please contact one of our experienced brokers today.