“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
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.
Who should consider insurance?
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.
What usually isn't covered?
Exclusions and the excess you need to pay can vary greatly depending on your insurer. Generally your policy won’t cover:
Cyber crime, unless specifically set out in your policy (you can get cover extensions in some cases).
Property damage or bodily injury
There are also other exclusions which your New Wave Insurance will happily outline for you.
What can it cover?
Management liability insurance policies vary in the benefits they provide. To give you an idea, here’s the type of cover that your policy may include:
Employment practice liability
Directors and officers liability