Management Liability Insurance

Every privately owned business faces risks which could affect its survival.

If you are a director or officer of a private company, then you need to be aware of the kinds of risks that could threaten your company and your personal financial security.

Management Liability Insurance

Unfortunately, every business relationship you have has the potential to turn to litigation should things go wrong.

Threats can come from the more predictable relationships like your employees, customers or suppliers but also from government regulators, investors or competitors, liquidators or administrators. For example, former employees may sue over your employment practices, a trusted employee may embezzle funds, or a client may sue over the behaviour of one of your employees. A competitor may sue for anti-competitive behaviour or your company could be sued over content posted on your website — or for something as serious as negligence leading to manslaughter.

The risks to your business — and your personal assets — are very varied and, in the current business climate, very real. So, if a threat does turn to litigation, you need to know that you have enough insurance protection to withstand the financial impact.

The consequences of defending a claim can be very expensive and time consuming and you could become liable to pay legal costs, compensation, costs and expenses — which can be considerable and financially crippling.

If you are managing a privately owned company, management liability insurance will provide you with comprehensive protection against such claims. Even when you may think a claim is completely baseless, it will still cost time and money to defend it.

SHC has been providing management liability insurance at the right price to business owners all over Australia since 1990. We’re experts at knowing the different risks that can affect your specific profession. We’ll take the time to explain the most relevant cover and features so you can make a fully informed decision. We’ll tailor our recommendations so you only pay for the cover you need — and the premiums will be the lowest possible.

Of course, we hope you will never need to claim on your policy, but if you do, then SHC will continue to look after you by managing the claims process on your behalf.

What is management liability insurance?

Management liability insurance protects the assets of individual directors and officers of a privately owned (proprietary) company and also the company itself for defined exposures associated with managing a company.

In brief it provides financial protection against actions or losses arising from legal claims against the business or its directors and officers for:

  • Representation costs where a director or officer is legally required to attend an inquiry or investigation relating to the affairs of the corporation
  • Legal costs and expenses in the defence and investigation of a Directors & Officers claim
  • Any compensation required to be paid by the insured in order to dispose of a Directors & Officers claim.

What does it cover?

Management liability insurance covers claims against the company alleging wrongful acts and includes:

Internet liability - Read More

Any company that has a website or provides information to the public via electronic publishing now faces the same legal exposures as traditional publishers. Risks include copyright infringement, virus transmission, defamation, improper disclosure of sensitive private facts and misuse of information. Internet liability cover includes:

  • Libel and slander 
  • Invasion or interference with any right of privacy
Fines and penalties - Read More

This minimises the potential cost of fines, penalties or legal fees imposed on the company and its directors and officers by a regulatory or government body for breach — accidental or otherwise — of statutory requirements. These breaches may be as the result of the unauthorised or irresponsible actions of its contractors, agents, subcontractors or employees, past or present, and can include occupational health and safety laws, environmental laws and employment laws.

Occupational health and safety costs

Crime - Read More

Every company is at risk from employee dishonesty. An employee or former employee can embezzle company funds, commit fraud, steal stock or commit other dishonest or fraudulent acts. This provides protection against such criminal activity and includes:

  • Loss of money, securities or property in the care, custody or control of the company 
  • Malicious act of any employee of the company 
  • Costs to an independent investigator, accountant or other consultant 
  • Purchase or repair of destroyed electronic data
Employment practices liability - Read More

Your board members and officers are subject to employee claims related to such things as alleged discrimination, unfair dismissal, sexual or workplace harassment, deprivation of career opportunity, breach of contract or other employment issues. This minimises the potential cost of claims taken against you by past, current and future employees and includes:

  • Misrepresentation 
  • Wrongful failure to employ or promote 
  • Defamation 
  • Invasion of privacy
Directors and officers liability - Read More

Investors, customers, clients, competitors and government regulators can sue your board members and officers over their actions or decisions. This provides cover for any claim alleging a wrongful act such as negligence, breach of duty, trading while insolvent, misrepresentations or even manslaughter and includes:

  • Advancement of costs and emergency defence costs 
  • Pollution costs 
  • OHS costs 
  • Outside directorships 
  • Retired directors and officers 
  • Public relations expenses

We’ll be happy to go through the cover options with you in as much or as little detail as you want.

SHC will help you choose the management liability cover that best provides the protection you need at the most competitive premium.

The SHC service promise

  • Full policy review and discussion of your coverage 
  • Personal service from our insurance experts 
  • The right cover at the right price, tailored to your needs 
  • Competitive discounted premiums 
  • Same-day service for in-house quotations 
  • Broad policy coverage 
  • Same-day coverage.

Convenient payment options

At SHC you can choose to pay your insurance premiums annually or monthly, whichever best suits your cash flow. Once you have decided on your insurance cover, we’ll discuss which payment option is best for your budget.

Fast, competitive quotes

We’re focused on your needs, flexible and fast so contact us today for a free quote. Speak to one of our customer service consultants now on 02 9806 2000.