Management Liability Insurance (incorporating Directors & Officers Insurance)
Historically various standalone insurance products were available offering protection to either Directors & Officers or the Company against claims made against them by employees or 3rd Parties such as Shareholders or Regulatory Authorities. These included Directors & Officers ("D&O") Insurance, to protect directors against claims for wrongful acts; Fidelity/Crime Insurance, to protect the company against misappropriation of company funds and/or property by employees; and Employment Practices Liability Insurance covering a Company for wrongful dismissal, sexual harassment and other claims by employees.
In recent years a new product has emerged called Management Liability Insurance which bundles a number of these and other insurance products together. The key elements of a typical Management Liability policy are as follows:
| Employment: | Covers the Company for claims alleging an Employment breach including wrongful dismissal, discrimination, harassment, deprivation of career opportunity, breach of contract etc. |
| Crime: | Covers the Company for claims alleging an Employment breach including wrongful dismissal, discrimination, harassment, deprivation of career opportunity, breach of contract etc. |
| Directors & Officers: | Covers the Directors & Officers for any claim alleging a wrongful act (negligence, breach of duty, misrepresentation) by a Director or Officer. |
| Company(Entity) Cover: | Covers the Company for a claim against the entity alleging wrongful acts. |
| Taxation Investigation: | Covers the Company for reasonable costs incurred following an Audit or Investigation by the Australian Taxation Office. |
Why do you need Management Liability Insurance ?
Although you may consider that an allegation against your company or directors is completely baseless or without merit, without insurance you leave yourself exposed to expensive and time consuming litigation to successfully defend any allegation, as well as a potential damages bill if a claim is ultimately successful.
As our society becomes increasingly litigious the risk of claims also increases, particularly employment related claims such as sexual harassment and unfair dismissal. Although most publicised claims are those made against large Corporations (e.g. 2010 David Jones case), any sized business that employs staff is at risk of these types of claims and susceptible to acts of employee dishonesty. As such we recommend that all of our clients who are employers consider purchasing a Management Liability Insurance policy as part of their overall risk management plan.
Why purchase your Management Liability Insurance through Express Insurance ?
Whether for Corporate Governance reasons or simply to protect your business against potential action by current and past employees, our streamlined online system makes it easy to get a quotation and buy this important cover online.
Not only have we negotiated great cover and pricing through Lloyds of London via DUAL, we have Management Liability specialists with years of experience in this area on hand to fully support you and answer all of your enquiries.