Business owners are often familiar with the tangible risks that require insurance cover. Events like fire, burglary and injury are readily envisaged and easy to cover with insurance. However, when it comes to intangibles, experience indicates that directors and key management are less likely to have a clear appreciation of the risks that they are exposed to. One of the key risks is the potential personal liability of third party losses that occurred as a result of their negligence.
Traditionally professional liability insurance, management liability insurance and directors liability insurance have been treated as separate areas of risk. However, each area relates to the diligence and fiduciary conduct of a company’s senior executives & corporate officers- meaning that businesses require an insurance policy that covers all areas of risk. Sydney Insurance Brokers offers Management Liability insurance policies which can cover the following areas:
Directors & Officers Liability
Directors and Officers Liability affects directors, company secretaries and company officers who have legal duties to their company. These duties can make them personally liable to shareholders and third parties for losses or damages sustained as a result of personal negligence or misconduct.
Directors & Officers liability insurance covers the claims imposed against directors & corporate officers for illegal acts, errors, omissions, breach of duty, misleading statements and more.
Professional Liability
Individuals giving advice in a professional capacity may be personally liable for third party damages as a consequence of it. Individuals are obliged to be responsible for the quality of advice given.
Employer Liability
Employees may lodge a claim against officers of a company where they are employed if they feel they have been unfairly dealt with. These claims can be expensive to defend – even if they are eventually rejected, they can still damage a business.
A good Management Liability Insurance policy will protect directors and key management personally from the costs of defending claims and meeting the costs of unsuccessful claims.
What is included in the policy?
- Both directors and officers (D&O) liability insurance and the same kind of insurance for management
- Employment practices liability
- Statutory liability
- Occupational health and safety liability
- Tax audit liability
What is not included in the policy?
- Liability that arises out of someone committing a crime
Contact Sydney Insurance Brokers to discuss how we can meet your obligations with our Management Insurance policy.