If you are in business, you will be aware of the importance of managing your associated business risks through appropriate insurance cover.

Common examples of business insurances include Public Liability, Professional Indemnity, WorkCover, Commercial Vehicle or Business Interruption. Most of our clients with businesses probably feel they are quite well covered when it comes to these insurances. However, we find that often overlooked are the risks faced through any potential mismanagement of your company by Officers such as Directors or Secretaries, but even representatives of your business such as employees.

Management Liability Insurance is designed to protect you and your valuable business against losses resulting from a ‘wrongful act’ by a Director, Officer or Employee carrying out their duties and obligations in the course of management of the company.

Examples of claims that can be made against a Company and its Officers include, but are not limited to:

  • Alleged unfair or discriminatory employment practices
  • Unfair dismissal
  • Sexual harassment
  • Breaches of directors’ or officers’ duties
  • Defamation
  • Insolvent Trading
  • Unfair Competition
  • Fraud
  • Breaches of legislation under the Trades Practices Act, OHS legislation or other statutes
  • Breaches of confidentiality

Management Liability Insurance will protect you by providing cover for:

  1. Legal representation at investigations and coronial inquiries
  2. Costs of defending a prosecution
  3. Fines, if insurable at law.

It’s important to be aware that Directors, Managers and employees can potentially be held personally liable for acts of mismanagement, thereby exposing their personal wealth in addition to company assets.

Could this benefit you? If so, contact Mike or George by calling 03 9523 6500 or emailing info@mgaccountants.com.au