What is Directors and Officers’ Liability Insurance?
As a director, officer or senior manager of a company, there are circumstances in which the actions of your company may become your personal responsibility. If there is a breach of WOH&S or the Corporations Act, for example, you could be held accountable, both legally and financially, for your company's failure to comply with its legal obligations. The rationale for this is that it is your fiduciary duty as a director to make sure you adequately supervise and oversee these aspects of your business.
A D&O policy offers protection for your directors, officers and senior managers, whose personal assets could otherwise be at risk. It insures your officers against the financial consequences of claims by shareholders, employees, regulatory bodies or creditors relating to 'wrongful acts' in the management of the business, ranging from mismanagement of assets to inappropriate use of clients' personal data. It covers the costs of legal proceedings as well as damages awarded against them and fines in certain cases. If you are hoping to recruit experienced professionals to join your senior management team or serve on your board you will almost certainly need to have a D&O policy in place before they will be willing to accept the position.
It may also be necessary to have D&O insurance, as well other business insurances, in order to secure funding for your business from banks or venture capitalists.
What is Management Liability Insurance?
Management Liability Insurance is a comprehensive cover designed specifically for private companies, to protect both your company and your senior management against a wide range of threats. We can also provide insurance for the trustees of Superannuation Funds, protecting you against any claim for breach of your duties or mismanagement of the superfund.
Our Management Liability Insurance provisions include traditional D&O insurance, but also offer you protection against the complex exposures of employment practices liability, employee fraud and for the expenses incurred in connection with an ATO audit.
Claims for harassment of or discrimination against employees are becoming increasingly common and can result in substantial fines, so this is a major area of risk for many companies. We can also protect you against loss of property caused by employee dishonesty, where this property (including money) is either the Insured’s or for which the Insured is legally responsible.
Regardless of the cause or type of claim against your company or management, a claim could severely damage your reputation and financial standing. You can also cover any reasonable expense for media costs under your management liability insurance policy to enable you to seek professional help to minimise the impact of a critical event and get your business back on track.
How to buy Management Liability Insurance
You can take out four types of Management Liability Insurance as part of our Small Business Advantage insurance:
- Directors & Officers – Protect your directors and officers against their personal liability for a breach of duty, breach of trust, act, error or omission
- Employment Practices Liability – Covers you for a claim against you for a specific employment practices breach, such as discrimination, wrongful dismissal or sexual harassment.
- Crime – Covers you for the loss of property that has been unlawfully taken by an employee.
- Tax Audit – Get cover for professional fees incurred in connection for audits into your financial affairs conducted by a statutory authority.
Combine your management liability insurance with a range of other essential business covers in a single small business insurance policy.
For many companies, insurance is a fundamental part of doing business. Public liability cover, for example, may be a basic requirement of your operating licence. In many cases your potential clients, suppliers or investors will want to know that the financial stability of your business is protected. You may need to provide evidence of your insurance arrangements as part of the tender process for contracts, or during negotiations for credit lines or funding.
Even if you aren’t required to take out business insurance, it’s prudent to do so. You’ve worked hard to build up your business and without protection you could lose everything you’ve achieved to a single event, like a storm or fire.
Business insurance can cover you for many types of risk, from theft and damage to lost income or liability claims.
Your business is unique, and so are the opportunities and risks you face. Your insurance needs may depend on a wide range of factors, including
- The nature of the work you do
- The type, value and location of your assets
- Whether you manufacture products or carry high volumes of stock
- Whether you provide advice which may be relied upon by your customers
- Whether you work in public spaces or on customers' premises
- The legal and management structure of your company
- Whether you have employees, and the size of your team
- The physical, financial or reputational risks which threaten your company
The most popular types of business insurance include:
- Public or product liability
- Asset or property insurance
Both these essential insurances are options within our Small Business Advantage insurance, available online.
Other common business insurances include professional indemnity and management liability insurance, which can also be incorporated into your Small Business Advantage policy.
There are also specialised insurances available to mitigate more specific threats, such as transit insurance, machinery breakdown and electronic equipment. If you’re looking for more specialised policy, simply contact our friendly team on 1300 467 872 for information.
You could have immediate cover for all your major risks, without waiting for quotes from brokers. Our Small Business Advantage insurance package gives you the option to take out comprehensive protection against loss or damage to your property, interruption to your business and public or product liability claims plus a wide range of other threats.
If you need more specialised business insurance cover, 1300 Insurance is still the smart choice. We work with every major provider of business insurance in Australia and have close relationships throughout the global insurance marketplace. Our advisors have extensive risk management expertise and detailed knowledge of all the diverse business insurance products available in the market.
We'll also guide you through the underwriting process and support you throughout the lifetime of your insurance policy with a dedicated account manager, claims support and ongoing information.
Our small business insurance package is brought to you in partnership with leading Australian insurance provider Allianz. It enables you to tailor your business cover to suit your needs, all in a single, affordable policy. It’s designed to suit more than 2,000 professions and offer protection against all the major risks faced by most businesses, including theft, damage or business interruption due to natural disasters, and public or product liability insurance.
We also offer packages designed for office-based professionals and for tradespeople and service providers.
The cost of your small business insurance policy is your monthly premium. The amount you pay may depend a number of factors, including
- The type of work your business does
- How many employees you have
- Where your business is located
- How much stock you carry, if any
- The nature and value of your business property
- The size of your business and your annual profits
- Which types of cover you choose to take out.
All these things can determine the type of risks you face and the likelihood you will need to make a claim, which is the information used to calculate your premium.
You can find out what your premium amount will be by clicking on the "Get a Quote" button below.
Our small business online insurance has a 14-day cooling off period. So if you have second thoughts after buying your cover you can cancel it within two weeks and get a full refund, provided that you have not made a claim.
As long as you pay your premiums when they are due, your small business online insurance policy will remain in place for the period shown on your policy document.
If you do not pay your premiums on time we may be entitled to reduce or refuse to pay a claim and cancel your policy.
You can cancel your policy at any time. The cancellation will be effective on the date we receive your request and an administration fee will apply.
If you decide to cancel your policy, we will refund the proportion of your premium relating to the unused period of insurance, less the administration fee and any non-refundable government charges. However, we will not refund any premium if you have made a claim.
When you buy your small business insurance through 1300 Insurance in partnership with Allianz, you can spread the cost of your premiums without paying extra. Whether you opt for annual or monthly instalments, you’ll pay the same total premium to protect your business.
Premiums payable by instalments may be subject to minor adjustments (upwards or downwards) due to rounding, and financial institution transaction fees may apply.
It’s really important that you keep up to date with your premium payments. If you do not pay your premiums on time we may be entitled to reduce or refuse to pay a claim and cancel your policy. This means you will not be covered for loss, damage or interruption to your business due to theft or natural disasters, or for public or product liability claims or any other type of cover you have taken out.
Generally, you can claim a tax deduction for the premiums your business pays on most types of business insurance. However, this is not always the case for all types of insurance, so it’s important that you contact your tax advisor for advice on the individual circumstances of your business.
Thanks for your question.
We try very hard to respond to every question we get in a timely manner, but if your question is urgent you might want to call us on 1300 467 872.