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Management Liability Insurance

An essential part of your risk management toolkit

Protection for your company and you as a business owner and director

When considering insurance for your business, most people naturally consider the tangible assets of the company.  However, as a business owner or director making operational decisions day in, day out, what protection is in place to cover you as an individual? Whilst operating a business, there is a vast array of operating exposures, which if not adequately covered, could have crippling financial implications for your business, and you as an individual [the Director of the company].

Critical stats to consider

What business owners, directors and officers should consider before discounting the need for management liability cover:

 

 

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Your company is prohibited from indemnifying

you for certain Personal Fines & Penalties

 

How can management liability insurance can help?

While not always considered, management liability insurance can prove a vital component in any business owners' risk management toolkit and will normall cover the following risks:

 

Real Claims Examples

Claims in this space can be sizeable, below we highlight a few exmaples 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

 

         
 

Work Health and Safety

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

   

 

Insurer paid the fine of $4000.

       
 

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 a large retail 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 & 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.

 

As your insurance broker we can help you identify where your risk exposures lie for your business and you indiviudally. Our aim is to cover you for the risks that affect you and not the ones that don't, which is why we take the time to understand you and your business first to ensure we get you the right cover, in the most cost efficient manner. 

Management Liability FAQ's

What is management liability insurance?

Management liability insurance covers directors, officers, managers and business entities against the allegations of mismanagement of a company. 

What is the difference between management liability and professional indemnity insurance?

Professional indemnity insurance protects you against claims from clients and third parties for professional advice or services you've provided, whereas management liability covers exposures related to the mismanagement of your company. 

How much does management liability cost?

The cost of management liability insurance varies dependant on the components of coverage you incude, as well as the size and risk exposure of your business. At Aon, we can tailor a solution to best meet the unique needs of your company. 

What are the benefits of purchasing management liability insurance?

Aon's management liability insurance offers efficient coverage for exposures faced by directors, officers, managers and business entities. We work with you to identify the relevant covers from the traditional management liability produce suite, which can be purchased in an combination or on a stand-alone basis. 

Our partner associations

Approved by leading industry associations, our professional indemnity insurance packages are tailored to meet the unique requirements and specific needs of your business.

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