Management Liability Insurance is extremely important for directors and especially those who are also shareholders of a company.
Directors can be exposed to personal liability for breaches of duties. A simple act, error or omission can be enough to spark a claim against you or your company.
You can personally be exposed to:
- The cost of defending a claim, and any damages and costs awarded. These can be based upon an allegation of you breaching your duty as a director or officer.
- The cost of preparing for and being represented at an inquiry that you are required to attend because you serve as a director or officer.
- Pecuniary penalties that arise from you being a director or officer.
- A claim against you by another director, officer or employee arising from an employment related complaint.
- Liability whilst serving as an external director.
- Liability whilst acting as a trustee of a corporate superannuation fund.
Your company can also be exposed to:
- The cost of defending a claim, and any damages and costs awarded as a result of a wrongful act.
- Theft or fraud by employees.
- The cost of investigating theft or fraud by employees.
- Pecuniary penalties imposed on the company.
The policies available through Citycover can cover:
- Directors & Officers Liability – providing coverage for mis-management claims against the directors and officers where they are not indemnified by the Company
- Company Reimbursement – providing coverage for mis-management claims against the directors and officers where they are indemnified by the Company
- Company Liability – providing coverage for mis-management claims against the Company
- Crisis Containment – providing coverage for costs associated with the appointment of a public relations consultant to assist with the management of a crisis threatening the business
- Employment Practices Liability – providing coverage for claims by employees against the Company for employment related issues such as unfair dismissal, sexual harassment or discrimination
- Superannuation Trustees Liability – providing coverage for mis-management claims of the staff superannuation fund
- Fidelity Guarantee – providing coverage for direct financial loss caused to the Company by the dishonesty or fraud of employees or directors
- Advance payment of defense costs
- Legal representation costs incurred by directors/officers at official investigations or inquiries
- Cover for directorships held with other companies
To obtain a quote or learn more about management liability insurance, please phone us on (07) 3270 1500