“Penalties awarded against companies and its directors or officers for work health safety breaches have increased by 43% to $22.3 million in one year. Penalties now average $62,000 per company.”
Safe Work Australia, Key Work Health Safety Statistics 2014
When you’re running a business, you may be personally liable for any actual or alleged breaches of the Corporations Act. And it’s not just large companies that are exposed - small and medium business owners and officers could be at risk as well.
Management Liability 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.
Management Liability Insurance policies vary in the benefits they provide. To give you an idea, here’s the type of cover that your policy may include:
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).
Defence costs - Covers your legal costs if your business ends up in court
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).
Exclusions and the excess you need to pay can vary greatly depending on your insurer. Generally your policy won’t cover:
Cyber crime, unless specifically set out in your policy (you can get cover extensions in some cases)
Property damage or bodily injury
There are other exclusions which your Tudor insurance broker can outline for you.
Did you know that what is actually covered can vary considerably between insurers? Often with exclusions or high excess payments that you may not be aware of. You need a broker who can assess your individual situation, offer the right insurance and explain precisely what is and isn’t covered.
It's easy to pay too much for insurance, but it's just as easy to pay too little then find out too late that you're not covered. There's a lot of flashy online insurance calculators out there but they focus only on price. Talk to Tudor and you talk to a real person who knows the what level of cover should be recommended and who will personally help you with a claim.
Working for you.