Management Liability Insurance Protection for a Company and its Directors
The business world is changing and you and your company are at risk now more than ever before – Management Liability Insurance.
Most private companies operate without the knowledge that serious loopholes exist for management related risks. Often this area is ignored and company directors and officers are directly exposed to financial risks and well as the entity itself.
Management Liability Insurance has been created to offer the company (or other entity) and the directors secure protection – It is much more encompassing than the covers offered under a traditional directors and officers insurance as it protects both the personal assets (wealth) of the directors and offices as well as the company itself.
Management Liability Insurance is not a stand alone item usually but a cover to enhance the protection of the existing insurance program.
Comprehensive Management Liability Insurance
Comprehensive Management Liability Insurance covers both the directors personally and the company for claims made by or resulting from government agencies, OH&S breaches, creditors, legislative breaches, competitors and shareholders.
It rolls several insurance policies into one for complete protection for a comprehensive range of management exposures. These include:
- Directors and Officers Insurance covering directors personally for legal action taken against them by shareholders, creditors and government bodies associated with wrongful acts, insolvent trading, breaches of OH&S legislation or Corporations Law, misuse of confidential or copyrighted information and more.
- Employment Liability Insurance covering directors personally and the company for employment related claims such as failure to employ, failure to promote, workplace discrimination, sexual harassment and workplace bullying
- Superannuation Trustees Liability Insurance covering the trustee for breach of their professional duty in the management of the company superfund
- Employee Crime Insurance covering directors personally and the company for financial loss suffered as a result of fraudulent or dishonest acts committed by employees.
- Crisis Loss and Public Relations Insurance covering directors personally and the company for situations where an event may cause the business to suffer an imminent decrease of total consolidated annual revenue of 30% or more. The insurer will pay for a specialist external crisis consulting team to provide their services to prevent or minimise a loss.
Why use a broker?
Your broker should be familiar with every insurer offering management liability insurance. Using their market knowledge and contacts to enhance your level of coverage for the widest range of exposures to your board and management.
An Insurance Broker will act as your risk partner and maintain a vigilant insurance program for every exposure you wish or need to cover.
What’s more, take out management liability insurance with an Insurance broker and you will gain many extra advantages not limited to :
- Service guarantee including a dedicated Account Manager and Support Team
- Financial analysis services
- Formal review processes for a range of business and professional risks
- A range of other support services including claims analysis and consulting