Get a Quote

Management Liability Insurance

Get a Quote

"*" indicates required fields

Management liability insurance may cover business owners and directors personal and business assets when a manager or director acts in an illegal or unethical way that cause losses to individuals or businesses.

This insurance cover is designed to shield your organisation and personal assets from a broad spectrum of risks, including regulatory investigations, liability that can arise from employment practices and disputes, cyber liability, fiduciary, and the potential vulnerabilities of directors and officers.

As organisations grow, while it is often impractical to control the activities of all team members , the organisation may still liable for it’s employees and member actions.

Management Liability is explained below by answering some of the most frequently asked questions our employer liability brokers receive from business owners and directors of not-for-profits.

Many Business Owners are UNSURE if they are COVERED PROPERLY.
We help them find affordable and SUITABLE INSURANCE so they can run their business with CONFIDENCE.*

What is Management Liability Insurance? *

Management liability insurance is one of the types of insurance coverage protecting officers, managers, directors of organisations and in some cases the entity as a whole against various risks and liabilities. These risks and financial liabilities potentially arise from legal claims against management decisions and actions taken.

Management Liability Insurance is an important safeguard for business owners and directors in Australia, designed to mitigate the unique risks faced by business owners, directors, and senior managers. This specialised form of business insurance may provide protection against the legal costs, damages, and losses that can arise from a wide range of management liability disputes.

An organisation, irrespective of its nature and size, may need this insurance to create a layer of defence against various financial setbacks and expensive lawsuits. Management Liability Insurance may offer a safety net for organisations and may protect them against lawsuits arising from ATO audits, cyber-attacks, employee misconduct, discrimination, unfair terminations, management decisions and other management-related issues.

Management Liability Insurance may cover the financial repercussions that can otherwise severely impact your organisation. The policy extends beyond the businessowners, individual directors, and officers to include the company itself, offering coverage for statutory liabilities, crime insurance, directors’ and officers’ liability, and employment practices liability.

This insurance is especially critical for business owners and directors who are also shareholders, protecting personal assets from being used to cover legal expenses or damages awarded in claims.

While not a mandatory cover, the affordable nature of Management Liability Insurance relative to the broad protection it offers makes it a wise investment for business owners. It may shield against claims that could come from regulatory bodies like ASIC, ACCC, WorkSafe, EPA, and more, ensuring that your business can continue to thrive even in the face of legal challenges.

Get a Quote

"*" indicates required fields

Who needs Management Liability Insurance? *

Any organisation with employees, executive officers, managers and directors making important decisions on behalf of the company which may influence the daily operations should consider having management liability insurance.

In an era where legal and regulatory landscapes are perpetually shifting, business owners and directors are increasingly finding themselves in the crosshairs of regulatory investigations, employment disputes, and claims of mismanagement.

This vulnerability underscores the critical importance of Management Liability Insurance. This cover may provide a financial safety net for defending against claims arising from the actions and decisions of a company’s leadership and also extends protection to personal assets and family security of business owners and directors.

Management Liability Insurance’s coverage related to the legal affairs for any unjustified actions taken within the organisation is one of the key aspects. The allegations may range from (but not limited to) mismanagement of funds, and violation of employment practices to breaching fiduciary duties. Apart from the legal costs, management liability insurance may also cover judgement, settlement and defence costs. Employees, officers and directors could be exposed to severe personal financial losses, even loss of assets, without this insurance. Protection against these liabilities may protects the individuals and the organisation as a whole.

What type of organisations and individuals need Management Liability Insurance? *

Private Companies:

Business owners that want to protect their (personal) assets from the risks of their company liabilities and lawsuits should seriously consider taking out a Management Liability Insurance policy.

In circumstances where business owners are sued for illicit activities, poor decisions, or mishandling of the firm, this insurance may protect them from possible financial devastation. Business owners have a chance to safeguard their belongings, real estate, and other assets from potential legal problems or regulatory enquiries by obtaining Management Liability Insurance.

For small business owners in particular, this coverage may be equally crucial for them, since a range of circumstances, including claims of discrimination, harassment, carelessness, or violation of fiduciary duty, may give rise to legal actions against the entity or its directors.

Not-For-Profit Organisations and Associations:

Management Liability Insurance is also helpful for officers and board members of not-for-profit organisations and associations (NFPs). They may also need to be protected against legal proceedings and statutory claims.

Not-for-profit organisations may benefit greatly from management liability insurance, which may protect its executives and board members from a variety of risks and legal actions such as employment issues, and governance.

Directors and Officers:

Management Liability Insurance is an essential tool for companies’ Officers and Directors to be protected from financial instability resulting from their board and managerial choices.

They may be personally sued in terms of assets if suspected of any wrongdoing or mismanagement during their time in office, hence, Management Liability Insurance is a must.

Most importantly, Management Liability Insurance may cover judgement costs, settlement costs, and other legal charges and may also work to protect their financial interests.

What are the benefits of having Management Liability Insurance? *

Financial protection for business owners, directors and managers and the company against any legal battle is a significant benefit.

It may provide a safeguard against the financial devastations of legal actions and may also enable businesses to continue operations without the looming threat of crippling legal fees or penalties.

What may Management Liability Insurance cover? *

Management Liability Insurance is a safeguard designed to address the multifaceted risks that business owners in Australia face in their daily operations.

This type of liability insurance may cover any costs related to settlements, court-imposed compensations, or any other form of legal expenses on behalf of the insurer.

Management Liability Insurance is a shield for individuals serving in leadership roles in an organisation like managers, executive officers and the board of directors (BODs). They may be protected from the financial burden of legal matters arising from allegations of employee mishandling, mismanagement of business affairs, breaching duties and negligence at work.

From unforeseen OH&S issues to the intricacies of dealing with unfair dismissal claims, sexual harassment allegations, and even the nuances of statutory breach of duty, the coverage extends far beyond the basic protection mechanisms.

At its core, Management Liability Insurance may encompass a wide array of protections, including but not limited to, damages and costs awarded against the insured, extensive legal and defence costs, and the expenses associated with the investigation of claims. This insurance may go a step further by covering certain civil fines and penalties that could be financially debilitating for a business owner.

Moreover, the insurance may cover the costs involved in investigating, defending, and settling claims by third parties, as well as paying any compensation the business is found liable for.

Management Liability Insurance policies may cover the following:

Directors and officers liability
Superannuation Trust Liability
Employment practice liability (EPL)
Statutory fines and penalties cover
Employee Crime

Management Liability Insurance coverage compared *

When comparing management liability policies some of the items to consider are:

The allocation percentage for defence costs
Whether internet liability/cover insurance is covered
Continuity of cover
Retroactive date
Breadth of cover for Statutory Liability
Breadth of cover for crime
Occupational Health and Safety (OHS) coverage

Our Management Liability Insurance brokers may be able to assist in comparing management liability insurance policies and helping you find an affordable and suitable policy for your organisation.

How much does management liability insurance cost? *

Key factors in determining how much management liability insurance will cost an organisation include:

The size and turnover of your organisation
Number of staff
The optional covers selected
Your claims history
Experience and qualification of directors/partners
Fee revenue
Breadth of coverage
Indemnity limit
Excess / deductible

Our helpful insurance brokers may be able to help you find suitable and affordable management liability insurance for your organisation. Call us on 1300 542 573 to discuss your requirements.

Why use a Management Liability insurance broker? *

If you are a deciding on whether to use an insurance broker for your s management liability insurance, it is important to consider that brokers act in the interests of you, not the insurer.

Direct insurers and agents act for the insurer. This can be important; especially if you need to claim.

Management Liability Insurance can be complex, and an insurance broker helps guide you through the process to ensure your assets and risks are adequately protected.

You will have us in your corner if you need to claim.

We can secure difficult to obtain cover for you.

We negotiate with leading insurers and underwriting agencies on your behalf to get you multiple quotes on suitable cover.

As business insurance specialists we provide general advice on level of cover, excesses, deductibles, and risk.

Our brokers are specialists in business insurance such as management liability insurance. They are passionate about providing a professional, expert and friendly service to give you a positive customer experience at all times.

Our brokers negotiate and place insurance for organisations every working day. Learn more about what an insurance broker does and how we can help.

How do I get a Management Liability Insurance quote? *

Simply TALK to a SMART Business Management Liability Insurance broker on 1300 542 573 or contact us online for suitable and affordable quotes for your organisation.