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Management Liability Insurance

Why do you need Management Liability Insurance?

When thinking about insurance for your business it is normal to consider the liability of the company. But what about as an individual undertaking a vital role such as a business owner or director, who makes operational decisions day in, day out. There are rafts of risks you may face that you may not have considered, that frequently affect businesses and their owners every day and involve large financial impacts on both the business and the individuals and for that reason you need Management Liability Insurance.

 

 

 

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Your company is prohibited from indemnifying

you for certain Personal Fines & Penalties

 

 

The stats that all business owners, directors and officers should consider before discounting the need for management liability cover.

 

stats for business owners

 

 

 

 

 

 

 

How Can Management Liability Insurance Help?

Crime Risk: Protection for your business in the case of fraud and dishonesty by employees and third parties
 
Employment Practises Liability: Protecting you as an employer from claims against you from their employees

• Wrongful dismissal

• Bullying & Sexual harassment

• Other employment related incidents

 
Directors & Officers Liability: When you are held personally liable for a wrongful act carried out in the scope of your duties. 
 
Tax Audit Cover: When your business receives an unexpected tax audit, you need protection against the cost of responding
 
Statutory Liability Insurance: Protecting you as an employer from claims against you from their employees

• Work Health & Safety

• Privacy Laws 

 

Real Claims Examples

Claims in this space can be sizeable, below is a few examples of how businesses and their owners have been affected. 
 

Employment Practices Liability

 

 


Unfair Dismissal

Claimant alleged that they were made redundant due to having a Workers Compensation Claim settled out of court.

   

$80,000 settlement and $27,348 in legal costs.

         
 


Harassment and Bullying

The General Manager of a theatre company made an application to the Fair Work Commission for bullying.

   

$36,000 was paid to the GM with $16,000 in legal costs.

 

Statutory Liability 

 

 


OHS

Restaurant/ Bar was fined under the food act for unsanitary premises.

   

Insurer paid the fine of $400.

         
 


Breach of Statutory Obligation

Worker was killed on client's premises. WorkCover prosecuted our client for breach of s.32 of the Work Health and Safety Act 2011 by virtue of our client's alleged failure to comply with its health and safety duty under s.19(2) of the Act. Client pleaded guilty for lesser penalty.

   

Settlement $75,166.

 

Crime

 

 


Theft of Money

Employee of large company, was discovered to have stolen $108,500 worth of money and lottery tickets over 6-8 months. The employee was charged with theft.

   

Insurer paid $108,500

 

Directors and Officers

 

 


Misleading and Deceptive Conduct

A marketing firm was sued for misleading and deceptive conduct by a competing restaurant for advertising that the restaurant employed a celebrity chef. This particular chef was employed by the rival restaurant.

   

$230,000 settlement and $65,000 Legal Costs.

 

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