Management Liability Insurance is a packaged policy designed to protect private companies from the expenses involved in defending a claim and any damages / payouts awarded as a result of business activities.
Generally, management liability insurance will include the following cover:
- Directors and Officers Liability – Provides cover for claims against directors and officers for any actual or alleged wrongful acts in the performance of their duties.
- Corporate Legal Liability (entity cover) – Provides cover for claims against the company for any actual or alleged wrongful acts.
- Statutory Liability (including OH&S) – Provides cover for investigations, defence and possible penalties that may be awarded for a statutory breach. It’s interesting to note that there are over 5,000 individual legislative provisions that can result in fines or penalties and 700 provisions that can find a Director personally liable.
- Employment Practices Liability – Provides cover for actual or alleged employment related wrongful acts by or against employees. It’s worth noting that over 15,000 unfair dismissal cases were brought against SME’s in 2011 with the average cost of each case being $50,000.
- Employee Dishonesty – Provides cover for direct financial loss to the company resulting from a fraudulent or dishonest act of an employee.
- Kidnap & Extortion – Provides cover for loss arising from kidnapping, hijacking, wrongful detention, extortion, cyber extortion and political threat.
