If you are faced with unexpected liability costs, management liability insurance can protect your business and personal assets, such as your home, from being sold to cover the cost paying claims.
When you’re running a business, you may be personally liable for any actual or alleged breaches of the Corporations Act. And it’s not just large companies that are exposed small and medium business owners and officers could be at risk as well.
Management liability insurance covers the costs of defending directors, managers and employees against any claims that are the result of their actions or decisions
The likelihood of a claim that could be covered by a management liability policy has tripled in the last five years, with 50% of notifications resulting in a claim.
(Chubb 2016 Private Company Risk Survey)
The most common claims are for employment practices like bullying, harassment and wrongful dismissal
(Chubb 2016 private company risk survey)
Major claims by amount relate to crime – including employee fraud.
(Chubb 2016 Private Company Risk Survey)
Covers playouts fir claims of employment breaches, such as wrongful dismissal, bullying or discrimination
Protects your proprietary limited company's past, present and future directors, officers and managers against claims of wrongful acts. such as misrepresentation or breach of duty (subject to business size)
Protects your business against claims such as employee or third party fraud (not all criminal activity is covered)
Covers costs that your business would incur if you need to defend and settle claims from outside parties alleging wrongful conduct, as well as investigation into the affairs of the company
Covers the cost of defence, fines and penalties under some statutes( eg, Work Health and Safety).
Covers your legal costs if your business ends up in court
