Management Liability

Management Liability Insurance Queensland

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Management Liability Insurance protects you and your company against the risks and exposures of running the company (i.e. your liability for mismanagement).
Without adequate protection you could risk losing, not only your business, but also your personal assets. This insurance therefore protects you personally and therefore your wealth and lifestyle. The legal costs to defend allegations of wrongful acts alone can be financially crippling for businesses and individuals.

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Who needs Management Liability Insurance?

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Management Liability Insurance not only protects Directors & Officers for legal liability they may incur personally in managing a corporation, it also extends to the corporation itself for certain types of claims.
It’s an ideal insurance for small businesses and the most common form of incorporated entity to which Management Liability Insurance is offered is for a proprietary company.

What does Management Liability Insurance cover?

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Management Liability Insurance will generally cover the following amounts in relation to the above actions:

- 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 & 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

Actions against the corporation or losses sustained by the corporation generally covered by a Management Liability Insurance policy include:

- Directors & Officers liability
- Company reimbursement
- Company liability
- Employment practices liability
- Trustee liability
- Fidelity
- Business crisis consultant fees
- Representation costs in respect of an occupational health & safety investigation

Management Liability Insurance Advice

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Effective risk management includes:

- Directors and officers should be fully briefed on their areas of responsibility, so that all decisions may be taken on an informed basis; and
- Larger companies should establish audit committees to check on the conduct of the business and compliance with all statutory requirements.

Caution is exercised by underwriters with:

- Finance companies and companies involved in property and real estate, since in times of a market downturn they may experience problems with real estate purchased during boom times
- Companies that have experienced very rapid growth in a short period of time and been involved in takeover and merger activities, as in such cases the company and its directors may have been involved in activities which make them more prone to litigation by parties who have been adversely affected
- New companies, because there is no past record for underwriters to look at. In such cases, it is necessary to look to the directors and principal officers of the company and look at their background and experience; and
- Companies that are in a consistent loss—making situation.

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Management Liability Insurance Brokers

Our Brisbane Insurance Brokers can help you get the right insurance cover by assessing your specific needs and recommending the best value insurance solution for your business, whilst still maintaining the highest standard of cover.

Information Source

https://www.lmigroup.com/RiskCoach/GeneralInfo.aspx

https://www.pscconnect.com.au/business-insurance-products/management-liability-insurance/

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Befor Pty Ltd ABN 94 672 803 646 | CAR 1309635 trading as Hunter Broking is a Corporate Authorised Representative of Resilium Insurance Broking Pty Ltd ABN 92 169 975 973 | AFSL 460382.

The information on this website does not take into account the objectives, financial situation or needs of any person. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation or needs.

We subscribe to and are bound by the Insurance Brokers Code of Practice, a full copy of which is available from the National Insurance Brokers Association (NIBA) website, www.niba.com.au

General contents with set limits	Limit	Option to increase limits?
Jewellery, or items containing gold or silver	up to $10,000 for each item, set or collection, up to 25% of the unspecified contents sum insured in total, unless items have been specified
Watches (except smart watches)	up to $10,000 for each item, set or collection, up to 25% of the unspecified contents sum insured in total, unless items have been specified
Cameras and photographic equipment and accessories	up to $10,000 for each item, set or collection, up to 25% of the unspecified contents sum insured in total, unless items have been specified
Collections or sets, like stamps, memorabilia, documents, medals or coins	up to $10,000 for each item, set or collection, up to 25% of the unspecified contents sum insured in total, unless items have been specified
Pictures, paintings, works of art	up to $10,000 for each item, set or collection, up to 25% of the unspecified contents sum insured in total, unless items have been specified
Antiques or Oriental rugs	up to $10,000 for each item, set or collection, up to 25% of the unspecified contents sum insured in total, unless items have been specified
Commercially recorded or downloaded media content, including audio, video, phone or tablet applications and games	$2,000 in total
Spare parts or accessories (excluding keys) which are not fitted or being used for the following: motor vehicles farm vehicles caravans and trailers watercraft aircraft	$4,000 in total
Money, cheques, and other negotiable instruments	$2,000 in total
Contents intended to be kept outside, like Your barbeque, outdoor furniture and children’s play equipment.	$10,000 in total
Contents in a locked storage cage in the basement of a strata title development at the insured address	$5,000 in total
Laptops, tablets, mobile phones, portable computers and their accessories (see optional Listed Portable Contents cover on page 48 for ways to increase limits on these items)	$3,500 per item
Smart watches and other wearable technology	$1,500 per item
Drones and other remotely or autonomously piloted aircraft (covered only when not in use and not used for business).	$1,500 per item

Contents used for business
Specific equipment used for business, trade, or professional purposes, including: computers, hardware and software tools or musical instruments photographic equipment	up to $10,000 in total
Stock for business, trade or professional purposes.	$5,000 total