What is Management Liability Insurance?
When you have Management Liability Insurance in place you can run your business without the worry of financial loss from allegations of wrong doing. Management Liability Insurance protects your company and you as a Director (including your personal assets) against legal costs for allegations of mismanagement, misconduct or legislative breaches.
What is Covered with Management Liability Insurance?
- Damages and claimant costs awarded against you (the insured)
- Legal and defence costs
- Claims investigation costs
- Some civil fines and penalties
What is typically not Covered?
- Bodily injury
- Property damage
- Dishonesty / criminal action
- Known claims and circumstances (pre-existing events)
Why is Management Liability Insurance Important for Business Owners?
Management Liability Insurance protects your company and the business directors who undertake the vital roles within the business against the risks and exposures associated with running the company.
Who should consider Management Liability Insurance?
Companies with 2 or more employees, and private companies, company directors and senior management teams.
For example, you own a retail outlet that employs 5 people. Two of the employees steal goods over a period of time, and on-sell them to unsuspecting purchasers, including other pet businesses, and the employees pocketed the proceeds. A stocktake reveals the missing stock, and after an investigation you find the culprits. In such a circumstance you could claim the value of the stolen goods (up to the sub limit) under the crime section of the Management Liability policy, rather than just having to write it off.