Management Liability

Management Liability Insurance is a type of insurance designed to protect the personal assets of the directors, officers, and managers of a company, as well as the financial well-being of the company itself, against the costs associated with defending against claims related to management decisions and actions.

For more information, feel free to contact Warren directly at warren@broadrisk.com.au or call him on 0422 131 401.

What is Covered:

Management Liability Insurance typically provides coverage for:

• Directors' and Officers' Liability: Protection for claims made against the personal liability of company directors and officers.
• Company Reimbursement: Reimbursement to the company if it has paid the claim of a director or officer.a
• Employment Practices Liability: Coverage for claims made by employees alleging wrongful acts in the management of the employment relationship, such as wrongful termination, discrimination, or harassment.
• Statutory Liability: Protection for fines and penalties that may be imposed on the company or its managers for unintentional breaches of certain laws.
• Defence Costs: Legal fees associated with defending against claims, even if the claims are groundless.

What is Not Typically Covered:

While Management Liability Insurance provides broad protection, there are exclusions. These typically include:

• Intentional Illegal Acts: Any deliberate illegal acts or intentional regulatory breaches by company leaders are not covered.
• Known Claims: Claims or circumstances that were known prior to the inception of the policy are typically excluded.
• Bodily Injury and Property Damage: Claims related to physical injury or property damage are generally not covered under this policy and require separate coverage.
• Contractual Liabilities: Liabilities assumed under a contract beyond what would be imposed under common law are generally not covered.
• Insured vs. Insured Claims: Claims made by one insured party against another insured party under the same policy are often excluded.
• Creditors' Claims: Claims made by creditors of the company are typically not covered.
• Professional Services: Claims arising from the provision of professional services, which are typically covered under Professional Indemnity Insurance.

Frequently Asked Questions