What is Management Liability Insurance?
Management Liability Insurance is a comprehensive cover designed specifically for private companies, to insure both your company and your officers against a wide range of threats.
Our Management Liability Insurance provisions include traditional D&O insurance, but also offer you insurance 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 can result in substantial fines, so this is an area of risk. We can also insure 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.1
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.
What is Directors and Officers’ Liability Insurance?
As a director or officer 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.
A D&O policy offers insurance for your directors and officers, whose personal assets could otherwise be at risk. It can insure 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. It can cover the costs of legal proceedings as well as damages awarded against them and fines in certain cases.
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.
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 – Covers you or any of the directors and officers, against a breach of duty, breach of trust, wrongful act, error or omission for a claim that is first made and reported to us during the period of insurance.
- Employment Practices Liability – Covers you for a claim against you for a specific employment practices breach, such as discrimination or sexual harassment.
- Crime – Covers you for the loss of Property caused by Employee Dishonesty.
- Tax Audit – Get cover for professional fees incurred in connection with audits into your financial affairs conducted by a statutory authority (for example the ATO).
You can 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.
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 your insured property to loss of income due to business interruption 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
Common types of business insurance include:
- Glass cover
- Public and products liability
- Asset or property insurance
Both these essential insurances are options within our Small Business Advantage insurance, available online.
Other business insurances include 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 and products liability claims plus a wide range of other threats.
If you need more specialised business insurance cover, 1300 Insurance may still be able to assist. 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 Allianz Australia Insurance. 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 offers insurance against many of the risks faced by most businesses, including theft, damage or business interruption due to events such as fire, flood, storm damage etc, and public and products 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 and forms part of 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 to pay the full Annual amount or by monthly installments, 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.
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.
1Exclusions may apply, please read the PDS for more details