Management Liability

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

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