Management liability insurance
Management liability insurance quotes from licensed Australian brokers
The policy that covers the people running a private company. Employment claims, regulator investigations and employee theft, in one place.
- Licensed Australian brokers
- Free to use
- No obligation
Management liability is built for private and family companies. It bundles the covers that protect directors, officers and the company itself from the consequences of running a business: an unfair dismissal claim, a regulator turning up with questions, an employee helping themselves to the accounts. These are not property risks and no property policy responds to them. They are also, for most small companies, considerably more likely than a fire. CoverMy is free to use, and licensed Australian brokers come back with options.
What sits inside a management liability policy
The exact mix varies between insurers, but most policies assemble the same core sections. You can usually take them selectively, though the packaged version is normally better value than buying pieces separately.
- Directors and officers liability for claims against individuals personally
- Employment practices liability for unfair dismissal, discrimination, bullying and harassment claims
- Statutory liability for fines, penalties and the cost of responding to regulators where insurable
- Crime or fidelity cover for theft of company money by employees
- Company reimbursement, where the company indemnifies its directors
- Tax audit costs and legal representation expenses on many policies
Employment practices is the section that gets used
For most small and medium companies, the claim that actually arrives is an employment one. Unfair dismissal, general protections applications, discrimination and bullying complaints are common, and even a claim with no merit costs money to defend and time to manage. The section typically covers defence costs and any settlement or award, subject to the terms. Businesses with high staff turnover, or those that have recently made redundancies, tend to look at this cover more seriously.
Statutory liability and where the limits are
Australian businesses operate under a long list of regulators, and an investigation is expensive even when it ends with no action. Statutory liability cover generally responds to the costs of dealing with an investigation and, where the law permits, to fines and penalties. There is an important boundary: penalties that public policy says must be borne personally, including criminal penalties and many work health and safety fines, are not insurable in Australia. Your broker will explain what the wording can and cannot pick up in your state.
How it differs from directors and officers cover
A standalone directors and officers policy protects individuals against claims arising from their management of the company, and it is the usual arrangement for larger companies and those with external investors or a board. Management liability is broader and is aimed at private companies where the same handful of people own and run the business. It includes the directors and officers element and adds employment practices, statutory liability and crime. If you have external shareholders or are contemplating a raise, ask your broker which structure fits.
How it works
- 1
Tell us about the company and its people
2 min form
- 2
Licensed brokers review and compete on your quote
- 3
Compare offers and choose
No obligation
Frequently asked questions
Who needs management liability insurance?
Private and family companies with employees are the main market. If you employ people, deal with regulators, handle money and have directors who can be pursued personally, the exposures exist. Sole traders with no staff have less need for it, though the statutory liability element can still be relevant.
What does management liability cost?
It turns on the size of the company, the number of employees, turnover, the industry and the limit chosen. Employee numbers matter a great deal because the employment practices section is the most frequently used. A broker can put your details to several insurers and come back with real figures.
Are work health and safety fines covered?
Generally not the penalties themselves. Australian law treats some penalties as uninsurable as a matter of public policy, and work health and safety fines commonly fall into that category. The cost of legal representation and responding to an investigation is often covered. Ask your broker to be specific, since the position varies by state and by wording.
How is this different from public liability?
Public liability covers injury and property damage caused by your operations. Management liability covers the financial and legal consequences of how the business is run: employment disputes, regulatory action, claims against directors personally and employee dishonesty. They cover entirely different things and most companies need both.
Do I need it if I already have professional indemnity?
They do different jobs. Professional indemnity responds to claims from clients about your work. Management liability responds to claims from employees, regulators and shareholders about how the company is managed. A professional services firm with staff usually carries both.
Does CoverMy sell the insurance?
No. CoverMy passes your request to licensed Australian brokers who contact you directly. All advice, quotes and policies come from the broker you deal with. There is no cost and no obligation.
Get management liability quotes
Tell us about the company and licensed brokers will be in touch. Or call 1800 677 761.
Other cover you might need
This page is general information only. It does not take your situation into account and it is not a recommendation to buy any policy. Cover, limits and exclusions vary between insurers, so read the Product Disclosure Statement and Target Market Determination and refer to your broker for the full details of any policy.
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This page is general information only. It does not take your situation into account and it is not a recommendation to buy any policy. Cover, limits and exclusions vary between insurers, so read the Product Disclosure Statement and Target Market Determination and refer to your broker for the full details of any policy.
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