Overview:
Management Liability is a policy designed to protect the personal assets of the insured entity and the directors and managers against liability as a result of ‘Management Wrongful Acts’. Claims can be brought from many sources such as:
- Regulators (e.g. ACCC, ASIC, ATO)
- Employees
- Competitors
- Customers and suppliers
- Shareholders
Cover under a management liability policy can include;
- Directors and Officers Liability
- Employment Practices Liability (such as discrimination and unfair dismissal)
- Crime (theft by employees and others)
- Statutory Liability (fines and penalties)
- Internet Liability (operating a website)
- Kidnap, Ransom & Extortion
- Tax Audit
An allegation against the company or its directors may be completely without merit, but without Management Liability cover you leave yourself exposed to expensive and time consuming litigation to successfully defend any allegation.
Below are Questions and Answers. Please contact us if you would like to discuss, or request a quote
- In 2012, coinciding with the introduction of the Work Health and Safety Legislation, Occupational Work Health and Safety related Claim notifications increased by 71% (Chubb Insurance Company of Australia Limited, Claims Trends 2011-2012)
- In NSW alone -the NSW Fair Trading prosecuted 213 individuals and businesses for breaches. 184 of these were successful (Department of Fair Trading, 2010-2011 A Year in Review)
- In excess of 30% of companies with employees between 1 and 500 experienced a fraud against their company in 2012 (KPMG A Survey of Fraud, Bribery and Corruption In Australia and New Zealand 2012)