Management Liability Insurance
The insurance covers the costs of defending directors, managers and employees against any claims that are the result of their actions or decisions.
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.
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.
| Type of cover | Potential benefits |
|---|---|
| Employment practice liability | Covers payouts for claims of employment breaches, such as wrongful dismissal, bullying or discrimination |
| Directors’ and officers’ liability | Protects your proprietary limited company’s past, present and future directors, officers and managers against claims of wrongful acts, such as misrepresentation or breach of duty (subject to business size). |
| Crime | Protects your business against claims such as employee or third party fraud (not all criminal activity is covered). |
| Corporate liability | Covers costs that your business would incur if you need to defend and settle claims from outside parties alleging wrongful conduct, as well as investigation into the affairs of the company. |
| Statutory liability | Covers the cost of defence, fines and penalties under some statutes (e.g. Work Health and Safety). |
| Defence costs | Covers your legal costs if your business ends up in court. |
Exclusions and the excess you need to pay can vary greatly depending on your insurer.
Generally your policy won’t cover:
There are other exclusions and conditions that we can outline for you.
A former employee claims they were wrongfully dismissed from your business because they were unwell at the time their position was terminated. They want to be reinstated to their role and remunerated for their loss of income while they were out of work. After numerous unsuccessful conciliation attempts, the matter is brought before a court and you have to pay damages to your former employee.
A Management Liability policy allows you to recover some or all of these costs so you can continue to run your business without having to sell your business or personal assets. Depending on your policy, you may be able to make a claim for your legal defence costs, as well as the amount paid to your former employee.
We can provide many more claims examples as you request, to understand the relevance and importance of this Insurance form to your business
