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MANAGEMENT LIABILITY
INSURANCE
What is Management Liability Insurance?
Having management liability insurance is essential for any business. In today's world, where even the smallest mistake can have devastating consequences, it's important to protect your executives, managers, and directors with this type insurance.
This policy covers risks and issues related to managing and running a company, safeguarding both the company and its high-level employees.
What Management Liability Risks Are There?
Here are the main risks that management liability insurance can provide coverage for, despite the inherent risks that come with running a business:
- Strategic Risk
- Compliance Risk
- Operational Risk
- Reputational
Types of Liability
There are a number of different types of liability that fall under the umbrella of management liability. These include,
COMPANY LIABILITY
These types of claims are typically initiated against the company, even though they may be by managerial decisions.
Some instances include environmental prosecution, identity fraud, breach of contract, shareholder disputes, and accidental death.
EMPLOYMENT PRACTICES LIABILITY (EPL)
An EPL policy provides protection to a business and its employees against legal action related to acts such as harassment, wrongful dismissal, and employee misconduct, covering directors, officers, and employees.
DIRECTORS AND OFFICERS LIABILITY
A directors and officers liability policy provides protection for anyone involved in company management, including past, present, and future directors and officers.
This policy covers claims related to various liabilities such as insolvent trading, intellectual property breach, manslaughter, misappropriation of trade secrets, and engaging in unfair competition.
STATUTORY LIABILITY
This policy provides protection for businesses that are accused of violating certain laws.
It covers the fines and penalties imposed on the company, well as the costs of investigation and legal defense.
SUPERANNUATION TRUSTEES LIABILITY
For companies that handle their own employee superannuation fund, having this coverage is crucial.
It safeguards trustees against a range of conflicts, including incorrect payments and misrepresented payment amounts.
Why Your Business Needs Management Liability Insurance
In the current business environment, business owners face numerous challenges that can negatively impact their operations.
Therefore, obtaining appropriate insurance coverage is crucial for any business strategy.
These challenges may include commercial disputes, regulatory investigations, employment practice claims, business failures, employee theft, and the current economic climate.
Professional Indemnity Insurance vs Management Liability Insurance
Clients frequently inquire if management liability insurance is equivalent to professional indemnity insurance.
Although it may seem logical to interchange the two types of insurance, they are distinct products. Professional indemnity Insurance safeguards your business against any financial loss incurred by a third party due to the professional advice provided by your company.
On the other hand, Management Liability Insurance protects your company against third-party financial losses caused by mismanagement.
Your Trusted Insurance Partner
Hippo Insurance has been delivering top-notch insurance services across Australia for more than 4 years. Our team of specialists have an accumulated experience of more than 20 years in the insurance and finance industry, protecting over 1,000 families and business.
We value our clients' trust and time. Especially, we treat them as individuals, not just numbers. Our team of experts is dedicated to providing you with the best insurance coverage at an affordable price.
We understand that every individual or business has unique needs, which why we empower you to tailor your own protection to your specific requirements.
Unfair Dismissal by the Numbers
Employers faced a significant number of unfair dismissal suits, as per the Fair Work Commission's Annual Report (2018-2019).
Out of 13,928 applications filed, 13,422 were finalised, and 8161 cases went to conciliation for resolution.
To protect your business and reputation, management liability insurance is a smart option.
Consider speaking with an insurance expert to learn more.
A Closer Look: Unfair Dismissal
In the past, firing an employee was considered an internal matter that went unnoticed by the public.
However, mistreatment, bias, and favoritism towards employees have resulted in increased protection for workers who are terminated.
Even if you aim to be just and transparent in your termination process, you may face unexpected backlash from your company, directors, and yourself.
Unjustified dismissal is a frequent grievance against employers and is on the rise.
Contact Us
If you want to safeguard your company and its leaders, management liability insurance is a crucial component of your insurance plan. If you have any queries, please don't hesitate to contact Hippo Insurance.
Our experts are available to assist you and provide you with all necessary information to make an informed decision.
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