As a business owner, board director, or officer, perhaps one of your most crucial tasks is protecting the business. That includes insuring various aspects of your venture so that when a troublesome situation arises, your enterprise would not be caught off guard. Thus, management liability insurance is an essential type of insurance every company should have.
Management liability insurance aims to protect directors, managers, and business entities from claims like sexual harassment, wrongful termination, and discrimination. It also covers other matters that pertain to governance, finance, and management activities. A standard Buderim management liability insurance policy includes director’s and officer’s liability, fiduciary liability insurance, employment practices liability, and special crime insurance. These may be separate, or combined in a single package. It is imperative to note that not all insurers offer the same coverage within their policies or the same application of policy limits and excesses.
Being a manager or a director of a company means taking on the risks associated with it, and management liability insurance aims to cover one from exposure to common claims such as breach of director’s duty, theft by employees, harassment, discrimination, breach of intellectual property rights, and many others. A management liability insurance policy should cover the following:
– Issues in Workplace Health and Safety (WHS)
– Taxation investigations by the Taxation Office
– Allegations of embezzlement
– Employment claims
– Statutory derivative actions by shareholders
– Defamation claims
– Insolvent trading
– Unfair competition
Getting in contact with a trusted and experienced insurance broker to get management liability insurance should help paint a picture of how such coverage can minimize the risks that the company and its executives might faced. This way, the company and the officers would enjoy benefits like minimised losses, reduced interruption of business operations, and assistance from the insurer regarding the policy and potential claims.
Management liability insurance coverage is not difficult to get; all one needs to do is to find an Insurer or Insurance Broker with a good reputation, one that can provide what the company needs. From there, the Broker will help you every step of the way. Keep in mind that pertinent documents like the full business history, claims history, lists of major suppliers and customers, full descriptions of business premises and activities, and Profit and Loss Statements might be required by the insurer.
(Source: Management Liability Insurance, Finder.com.au)