Management Liability Insurance
Protection for directors, officers and managers
The decisions you make running a company carry their own risks. Management liability covers the company and its senior people against claims arising from those decisions.
What management liability risks are there?
Running a business means living with risk. Management liability is designed around four kinds:
Strategic risk
decisions that turn out badly, from a merger to a product launch.
Compliance risk
alleged breaches of regulation, from environment to employment law.
Operational risk
failures in process, systems or people that cause loss.
Reputational risk
damage to the standing of the company and its leaders.
Types of liability
Company Liability
Claims typically brought against the company itself — environmental prosecution, identity fraud, breach of contract, shareholder disputes, or accidental death.
Employment Practices Liability (EPL)
Protects the business and its employees against legal action over harassment, wrongful dismissal and employee misconduct, covering directors, officers and employees.
Directors & Officers Liability
Cover for anyone involved in company management — past, present and future directors and officers — against claims such as insolvent trading, intellectual property breach, manslaughter, misappropriation of trade secrets and unfair competition.
Statutory Liability
Protection when the business is accused of breaching certain laws — covering fines and penalties, plus the cost of investigation and legal defence.
Superannuation Trustees Liability
For companies that run their own employee superannuation fund — safeguarding trustees against incorrect payments and misrepresented payment amounts.
PI vs management liability
Clients frequently ask whether management liability is the same as professional indemnity insurance. They're distinct products. Professional indemnity safeguards you against financial loss a third party suffers from your professional advice. Management liability protects you against third-party financial loss caused by mismanagement.
Unfair dismissal by the numbers
Per the Fair Work Commission's Annual Report (2018–2019), of 13,928 unfair dismissal applications filed, 13,422 were finalised and 8,161 went to conciliation.
A closer look: unfair dismissal
Unjustified dismissal is a frequent and growing grievance against employers. Even a fair, transparent termination process can attract a claim — against your company, its directors, and you personally.
Related cover
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Safeguard your company and its leaders
If you want to protect your business and the people who run it, management liability is a core part of your plan. Talk to us about which types apply to you.
General advice only. Consider the relevant PDS & TMD before acquiring any product.