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What is Management Liability Insurance?

When considering insurance for your business, the first things that come to mind are 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.

Management Liability Insurance is an efficient packaged suite of coverage for exposures faced by directors, officers, managers and business entities, generally in the SME market. It can prove a vital component in any business owners’ risk management toolkit and will normally cover the following risks:

  • Provides protection for directors & executive management of a business where you can be personally liable for any actual, or alleged mismanagement of the company whilst performing your duties within the business. 
  • Offers protection to both you and the company for fines and/or pecuniary penalties imposed by a regulator, for which you are liable to pay (where indemnifiable by Law) for unintentional breaches of certain statutes. 
  • Provides employment practices liability including unfair dismissal claims, alleged wrongful termination and claims of inappropriate redundancy. For example, if an employee alleged that they were made redundant due to having a worker’s compensation claim settled out of court. 

Why do I need Management Liability Insurance? 

When running a business, whether that’s as an owner, a director or manager, you’re responsible for making some big decisions. From deciding who to hire, where to spend each and every dollar, in all the tasks you do, the possibility of your actions being considered as discriminatory, or bullying, is a very real one. Employment disputes can be costly and claims made for unfair dismissal are on the increase. Management Liability is therefore an important consideration for any business owner, as it can help make sure if you do face allegations of mismanagement, you will have the financial capability to defend yourself in court, as well as pay compensation if required.1

Why Aon?

Management Liability Insurance. Easy.

Easy to Understand

  • Easy to digest information about insurances your business needs
  • Experienced, friendly brokers on 1300 836 028

Easy to Buy

  • Quick quotes online
  • Purchase in just a few clicks
  • Pay monthly options available

Easy to Manage

  • Manage your renewals easily
  • Adjust your policy anytime
  • Request certificates of insurance quickly and easily
  • Assistance in complex claims

Why choose Aon for Management Liability Insurance?

Aon is committed to making life easier for small and medium business owners with insurance that’s easy to understand, buy and manage. If you’re a small business owner, your job is anything but small, so when it comes to protecting your business with the right cover, it helps to have an expert on your side.

You can compare covers and take out a policy online in just a few clicks. But if you need help, our team of friendly experienced brokers are a phone call away, so you can have confidence you’re making a better decision for you and your business.

What does Management Liability Insurance typically cover?

Directors and Officers Insurance
Provides protection for Directors & executive management of a business where you can be personally liable for any actual, or alleged mismanagement of the company whilst performing your duties within the business.1
Employment Practices Liability
Helps protect you as an employer and the business against actual, or alleged claims brought on by your employees involving wrongful dismissal, bullying, harassment and other employment related incidents.1
Tax Audit Cover
When your business receives an unexpected tax audit, you may need protection against the cost of responding.1
Crime Risk
Protection for your business against incurring direct financial loss, resulting from acts of fraud or dishonesty committed by any employee/s &/or including third parties.1

Frequently Asked Questions
Here are some questions commonly asked by clients.
How much does Management Liability cost?
The cost of management liability insurance varies dependant on the components of coverage you include, as well as the size and risk exposure of your business. At Aon, we use our industry expertise and work with insurers to design cover tailored to the unique needs of your industry.
How do I make a claim?
You will find details of how to make a claim in the policy wording you receive from us. However, we also appreciate that having to make a claim can be a stressful time which is why as your advocate we are always on hand to help with any questions. Please do not hesitate to call us on 1300 836 028 during business hours. 
Can I pay for my policy monthly?
Yes, you can, monthly payments can be arranged through a premium funding agreement with Hunter Premium Funding2 to help you spread the costs of your insurance across the year. Please note that the total overall cost is higher if you pay monthly. Contact us on 1300 836 028 or by email on
Explore more FAQs
Who needs Management Liability and how do I decide if I need it?  
Management Liability may be taken out by private companies, not-for-profit organisations such as associations, and unlisted public companies. If your business is not among these, we recommend speaking to your broker to help you decide whether you may still require this cover.

What is the difference between Management Liability and Professional Indemnity Insurance?  
Professional indemnity insurance helps protect your business against claims from clients and third parties for professional advice or services you've provided, where they allege your service caused them loss or damage in some way. Management liability on the other hand covers exposures related to the mismanagement of your company.

What are the benefits of purchasing management liability insurance through Aon? 
The Management Liability Insurance arranged through Aon offers 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 product suite, which can be purchased in a combination or on a stand-alone basis.

What does Management Liability Insurance cover? 
Management Liability will normally cover the following risks: Crime risk, Directors & Officers Liability, Statutory Liability, Employment Practices Liability and Tax Audit Cover.1

What is Employee Practices Liability insurance? 
Employee practices liability insurance helps protect you as an employer and the business against actual, or alleged claims brought on by your employees involving wrongful dismissal, bullying, harassment and other employment related incidents. It is included in the management liability insurance package arranged by Aon.

What are your opening hours?
Our opening hours are 8.30am to 7.00pm Monday to Friday (AET, except public holidays). If you need to contact us out of hours you can email clicking here and your query will be picked up on the next business day.

How do I renew my policy?
Your renewal offer will be sent to you via your elected email address, approximately 30 days before your renewal date you will receive a renewal email including your tax invoice and schedule from Aon. It is important at this stage to review the details of our offer carefully (remember pricing and coverage levels may have changed so it is important to review). If you are happy with the offer and wish to accept, it is important that you pay for your renewal by the date specified on the tax invoice.

Thank you for looking into renewing your policy through Aon. It is greatly valued that you are pleased with the level of service and coverage you receive.

What if I need to make a change to my insurance?
It is important to keep your policy up to date with the changing shape of your business but also to keep your business and personal information up to date in the event of a claim.

Should your circumstances have changed, for example you have moved or the value of your building or contents have changed and you are not sure if your existing insurance covers it anymore then you can always call one of our experienced friendly brokers to discuss on 1300 836 028.


Ways to get in touch

Call 1300 836 028

8:30am - 7:00pm AET
Mon - Fri (except public holidays)

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1Subject to full terms, conditions and limits of the policy. Please review the full policy wording for more information.

Management Liability Insurance is arranged by Aon Risk Services Australia Limited ABN 17 000 434 720 AFSL 241141 (Aon) as agent for the insurer, CGU Insurance, ABN 11 000 016 722 AFSL 227681. If you purchase this insurance, Aon will receive a commission that is a percentage of the premium. Further information can be found in our FSG click here or provided upon request.