“Does anyone know about liability insurance?”
A simple question from one of our colleagues make us think to ourselves that what exactly liability insurance mean? And how it works? After researched and gathered from all of informations that we need, here is 9 important things you may never know about liability insurance.
Management Liability Insurance protects business owners of incorporated entities, who face real risk exposures every day. Without adequate protection you could quickly lose not only your business but also your personal assets. It’s a cover that we highly recommend for all business.
Management Liability policies have been designed to protect your company and its key individuals against the multitude of complex risks associated with operating a business. Management Liability Insurance is an innovative method of amalgamating traditional stand-alone covers such as Crime Protection, Directors and Officers Liability, Cyber and Privacy Liability, Entity Cover, Employment Practices Liability, Statutory Liability and Supplementary Legal Expenses and Tax Audit.
It’s cover time!
Management Liablity Insurance has cover…
- Damages and claimant costs awarded against you
- Defence (i.e. legal) costs
- Investigation costs
- Civil fines & pecuniary penalties
Great boss, Best officer
Directors and Officers Liabilities will protect the past, present and future directors and officers plus anyone else involved in the management of a company for claims alleging a wrongful act and for which the company does not grant indemnification to such person. Employees can also be covered.
Cover me please!
Employment Practices Liabilities provides cover to the company, directors, officers and employees for claims made by current, past and prospective employees for issues arising from employment practices, including harassment, unfair dismissal and other employment issues.
Love the Law
Statutory Liabilities covers certain individuals and the company for fines and penalties from operating the business including fines related to workers compensation and occupational health & safety.
A comprehensive crime section provides cover to the company for loss arising from dishonest acts such as theft and fraud by employees including theft of stock.
Corporate Entity Liabilities extremely relevant for companies that are owned by the directors by providing cover to the company for actions arising from managerial matters. A claim against the company will cause the same financial hardship to the owner; therefore this cover is extended to provide protection to the company.
Many of the same claims against the directors and officers will, typically, be brought first against the company.
Legal figure out
Legal Representation Costs that are incurred by directors/officers and the company for attendance at official investigations or inquiries are covered.
It’s not over till it’s cover!
Other Covers such as Tax Investigation / Public Relations / Crisis Containment. Additional management exposures can also be insured against under management liability insurance, to reimburse the company for certain costs incurred during a tax investigation by the ATO or to engage professional assistance in a crises.
The Insurance for all of business
- Management Liability Insurance covers the exposures & risks in managing a business.
- Directors and officers face both personal & corporate liabilities in managing a company and can be held personally liable.
- Claims can often arise from actual or alleged breaches of the Corporations Act, which regulates company law in Australia.
- Where Professional Indemnity (PI) Insurance covers the activities of the company, Management Liability Insurance focuses on the act of running a company.
Whatever your work it is, just remember…always work smart and play safe
Take care 🙂