What is Management Liability Insurance?

Quite often in business, when it comes to insurance, we only insure those things that we are either forced to insure because of bank loan requirements or items that have an obvious value to our business – for example, buildings, machines, trucks and the like.

In recent years litigation has been on the increase and whilst most businesses will have a Public and Products Liability policy to give them some legal protection, many businesses do not have an all important “Management Liability” policy that can provide peace of mind against risk of prosecutions by relevant OH&S Authorities.

Some businesses may not be aware of the “heavy fines” that can be imposed by such authorities on companies and directors and these fines can ultimately put you out of business. In Victoria for example, a company can be fined up to (approx) $1,000,000 “per offence” and a director or supervisor/employee can be fined up to (approx) $200,000 “per offence”. (Note: One incident can be made up of multiple offences.)

Cases have been seen where employees have been killed or seriously injured at worksites and Worksafe has successfully been able to fine the employer for certain breaches.

A Management Liability Policy is designed to protect you against these kind of events that can basically put your assets at risk and put you out of business. Such a policy would generally include:

Directors and Officers Liability (which would also cover your legal defence costs)

Statutory Liability cover - to cover the actual OH&S fine

Employment Liability - (legal costs to defend claims of unfair dismissal, harassment etc)

Crime Investigation Liability - embezzlement by staff

Tax Investigation Costs - covers your accountant’s costs to spend hours with the ATO discussing your tax returns.

Obviously, the policy does have certain conditions that need to be met, such as you must have an OH&S procedure in place. An employee’s safety is still paramount and this policy does “NOT” replace the need for you to protect your employees against work place accidents.

McNair Hurle Latrobe Insurance Brokers Pty Ltd has operated since 1977 and they are the largest locally owned Insurance Brokerage in Gippsland. They are also part of an Australiawide network of Insurance Brokers [IBNA Ltd and AIMS] that control in excess of $2 billion in premiums.

They would welcome the opportunity to discuss a Management Liability Policy with you in more detail and provide you with a no obligation quote. They can be contacted on 1300 645 645 or insure@mhl.com.au

Web: www.mhl.com.au