What is a Management Liability Insurance Policy?
Management Liability policies have evolved from Directors & Officers Liability Insurance, which was designed to protect the personal assets of directors and officers by providing indemnity for loss arising from a claim as a result of a wrongful act committed in the course of performing their management duties. The product is now a packaged product similar to a Business Insurance package, however covering the intangible components of your business risk such as claims from shareholders, employees, or statutory bodies. Some of the types of cover included are as follows;
- Directors & Officers Liability Insurance
Protects the Directors & Officers against claims resulting from management decisions. Directors face liabilities under Corporations Law, Trade Practices Act, Environmental legislation and a variety of government bodies and statutes (e.g. ATO and ACCC). Both Executive and Non Executive Directors can be held liability for actions of the company at a personal level which can put at risk personal assets.
- Employment Practices Liability Insurance
Protects the directors and the company from claims brought by employees for unfair dismissal, harassment, discrimination and/or unfair work practices.
- Fidelity Guarantee Insurance
Protects the company from direct losses resulting from employee theft.
- Statutory Liability Insurance
Protects directors and the company from statutory civil fines and penalties where at law the insurer is able to pay.
Examples of risks that are covered under each section