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Management Liability Insurance

What is it and who needs it, all your questions answered.

Management Liability Insurance is a type of insurance designed to protect the personal assets of the directors, officers, and managers of a company, as well as the financial well-being of the company itself, against the costs associated with defending against claims related to management decisions and actions.

What is Covered:

Management Liability Insurance typically provides coverage for:

  • Directors' and Officers' Liability: Protection for claims made against the personal liability of company directors and officers.

  • Company Reimbursement: Reimbursement to the company if it has paid the claim of a director or officer.a

  • Employment Practices Liability: Coverage for claims made by employees alleging wrongful acts in the management of the employment relationship, such as wrongful termination, discrimination, or harassment.

  • Statutory Liability: Protection for fines and penalties that may be imposed on the company or its managers for unintentional breaches of certain laws.

  • Defence Costs: Legal fees associated with defending against claims, even if the claims are groundless.

What is Not Typically Covered:

While Management Liability Insurance provides broad protection, there are exclusions. These typically include:

  • Intentional Illegal Acts: Any deliberate illegal acts or intentional regulatory breaches by company leaders are not covered.

  • Known Claims: Claims or circumstances that were known prior to the inception of the policy are typically excluded.

  • Bodily Injury and Property Damage: Claims related to physical injury or property damage are generally not covered under this policy and require separate coverage.

  • Contractual Liabilities: Liabilities assumed under a contract beyond what would be imposed under common law are generally not covered.

  • Insured vs. Insured Claims: Claims made by one insured party against another insured party under the same policy are often excluded.

  • Creditors' Claims: Claims made by creditors of the company are typically not covered.

  • Professional Services: Claims arising from the provision of professional services, which are typically covered under Professional Indemnity Insurance.

  • What is Business Insurance?
    Business insurance is a broad term for various policies designed to protect businesses from financial losses due to unforeseen events such as property damage, liability claims, employee-related risks, and more. It's a safeguard that helps ensure the continuity and stability of your business operations
  • Why Does My Business Need Insurance
    Insurance is essential for any business as it provides financial protection against common risks that could otherwise result in significant financial hardship or even the closure of your business. It covers everything from property damage and liability to employee dishonesty and electronic equipment breakdown.
  • How Much Does Business Insurance Cost?
    The cost of business insurance varies widely based on factors such as the size of your business, the industry you're in, the types of coverage you need, and your claims history. To get an accurate quote, it's best to speak with an insurance broker who can assess your specific needs.
  • How Do I know What type of Insurance My Business Needs?
    Determining the right type of insurance for your business depends on various factors, including the nature of your business, the risks associated with your industry, and your business's specific needs. An insurance broker can help you assess your risks and recommend the appropriate coverages.
  • Can I Customise My Business Insurance Package?
    Yes, business insurance packages are highly customizable. You can choose to include or exclude specific coverages based on your business's unique risks and requirements. An insurance broker can assist you in building a tailored insurance package that fits your business.
  • What Happens if I Don't Have Business Insurance?
    Operating without business insurance exposes you to significant risks. If an unforeseen event occurs, such as a lawsuit or property damage, you would have to pay out of pocket for any losses or damages. This could have a severe impact on your business's finances and could even lead to bankruptcy.
  • How Often Should I Review my Business Insurance?
    It's recommended to review your business insurance coverage at least annually or whenever there are significant changes to your business, such as expansion, offering new products or services, or purchasing new equipment. Regular reviews ensure that your coverage remains adequate as your business evolves.
Business Insurance Contact

If you would like more information on Professional Indemnity Insurance please fill out the below contact form or call Warren direct on 0422 131 401

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