Management Liability
A very simple explanation of the risk to your business for the main sections of these policies are summarised as follows;
Employment Practices Liability Insurance – Employees and former employees can sue a firm, its board members and its officers for discrimination, harassment, and other illegal employment practices.
Directors & Officers Liability Insurance – Investors, customers, client, government regulators, and competitors can sue a firm’s board members and officers over their actions or decisions.
Trustees Liability Insurance – Retirees, former employees, and employees can sue the firm and its plan fiduciaries foe alleged mismanagement in administering benefits.
Crime/Fidelity Insurance – A trusted employee can embezzle funds, steal inventory, or commit fraud over a long period of time.
Statutory Liability – A regulatory/Government body may impose a fine upon the company for breach of their statutory requirements.
Miscellaneous Professional Liability Insurance – Customers can sue a firm for alleged errors or omissions committed during the delivery of a professional service.
Internet Liability Insurance – The Company can be sued for copyright infringement or defamation over content it posts on its website.
Kidnap/Ransom and Extortion Insurance – An employee can be kidnapped while travelling overseas, or a criminal can attempt extortion against the firm by threatening its employees or products.
As you could imagine each insurer would have a slightly different suite of covers bundled into their package and this is where Milne Alexander can assist you in sourcing the right package for your specific needs and exposures.
George Peros, Director Milne Alexander Pty Ltd
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If you’re a Director or Officer of a business in Australia then you would or should know of the personal exposures you have in relation to the management of your business. Exposures or threats come from various sources including claims form shareholders, employees, regulators, competitors, customers, suppliers, creditors, environmental groups and more.
Whilst many businesses thoroughly insure their exposures to property loss and damage or Liability exposures, many businesses overlook their economic exposures to the management of their business.
Insurers have advised that the recent financial crisis has resulted in an increase in claims reported to them. Whilst many larger companies have their management teams fully protected it is a timely reminder for SME businesses to consider protection for themselves.
Several Insurers in Australia have developed Management Liability products which essentially offer a suite of covers bundled into one easily administered package to address the exposures of Directors and Officers of SME businesses. Traditional Directors’ & Officers policies designed for public companies generally do not cover the company itself whereas the Management Liability polices being offered extend to include cover for the business entity along with many other exposures.
Covers generally bundled into Management Liability policies include Directors’ & Officers, Company/Entity cover, Employment Practices Liability, Fidelity/Crime covers, Trustees Liability, Statutory Liability, Crisis Cover, Kidnap & Ransom Covers, Internet Liability and some Insurers can also include Miscellaneous Professional Liability as part of their package.
A very simple explanation of the risk to your business for the main sections of these policies are summarised as follows;
Employment Practices Liability Insurance – Employees and former employees can sue a firm, its board members and its officers for discrimination, harassment, and other illegal employment practices.
Directors & Officers Liability Insurance – Investors, customers, client, government regulators, and competitors can sue a firm’s board members and officers over their actions or decisions.
Trustees Liability Insurance – Retirees, former employees, and employees can sue the firm and its plan fiduciaries foe alleged mismanagement in administering benefits.
Crime/Fidelity Insurance – A trusted employee can embezzle funds, steal inventory, or commit fraud over a long period of time.
Statutory Liability – A regulatory/Government body may impose a fine upon the company for breach of their statutory requirements.
Miscellaneous Professional Liability Insurance – Customers can sue a firm for alleged errors or omissions committed during the delivery of a professional service.
Internet Liability Insurance – The Company can be sued for copyright infringement or defamation over content it posts on its website.
Kidnap/Ransom and Extortion Insurance – An employee can be kidnapped while travelling overseas, or a criminal can attempt extortion against the firm by threatening its employees or products.
As you could imagine each insurer would have a slightly different suite of covers bundled into their package and this is where Milne Alexander can assist you in sourcing the right package for your specific needs and exposures.
George Peros, Director Milne Alexander Pty Ltd