What is Management Liability Insurance?
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.
Why do I need it?
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 of paying claims.
"Penalties awarded against companies and its directors or officers for work health safety breaches have increased by 43% to $22 3 million in one year Penalties now average $62.000 per company"
Safe Work Australia, Key Work Health Safety Statistics 2014
Did you know?
Many businesses think it won't happen to them, but statistics show otherwise. In fact:
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)