Management Liability Insurance Specialists
As risks facing an entity constantly evolve, the need for management liability insurance is high. At Carollo Horton, we understand how important it is to protect owners, directors, trustees and other management personnel from the costs and potential losses arising from legal actions against the entity. In the event of mismanagement, not only might the business be liable, but management personnel as well.
Our team will advise you and the entity on the best level of management liability coverage and ensure that the inclusions suit the size and mix of your business. As your company grows, we will guide you in updating your management liability coverage to adequately protect the entity itself and persons in managerial roles.
To help you make the right decision, the following information can provide some useful answers to questions that you might already have.
What is Management Liability Insurance?
Management liability insurance protects the managers of an entity in the event of a claim by a third party due to mismanagement. Management is exposed to risks on a daily basis and it is difficult to know when a control might fail to mitigate the consequences exposed by the risk.
It is important to note that management liability insurance is not the same as professional indemnity insurance.
How Does Management Liability Insurance Work?
Should mismanagement occur, management liability insurance will help lower the financial burden associated with the consequences. Following an assessment of liability and quantum, the insurer will be in a position to make a payout depending on the circumstances. Where you or the entity might be liable to damages, defence costs, penalties, fines and investigatory costs, management liability insurance can help fund these expenses.
Do I Need Management Liability Insurance?
Management liability insurance is imperative for any entity that has persons in managerial positions. Certain types of organisations are required to comply with strict laws and regulations. Regulators, stakeholders and other third parties will scrutinise the management of an organisation should an issue arise. A failure to have insurance can expose the business and individuals to consequential financial, emotional and reputational loss.
Why is Management Liability Insurance important?
The economy, the industry, the entity and the overarching laws and regulations are constantly changing. Keeping up-to-date can be difficult. As entities grow and become more complex, management have to take more things into consideration. Should there be inadequate governance and oversight over all parts of the entity, a mistake could lead to serious consequences. Not only is the harm to the entity and management financial, but reputational and emotional too.
How Much Does Management Liability Insurance Cost?
The cost of management liability insurance will depend on the inclusions. We can tailor the insurance package depending on your business, the risks it faces and other internal and external factors. Our specialists can conduct an assessment of the insurance cover required to help you understand what can be protected.
What Does Management Liability Insurance Cover?
We will advise you on the best options for management liability insurance protection. Depending on the entity, you might want to be protected for:
- Claims of criminal behaviour or impropriety;
- Employment practices liability – including wrongful termination;
- Directors’ and officers’ liability – covering legal fees or losses relating to poor governance;
- Statutory liability – such as OH&S, environmental or legislative oversights;
- Tax audits – provides for accounting and legal costs relating to tax audits; and
- Much more.
How much Management Liability Insurance do I need?
You and your management colleagues will need to assess what you require. We can help guide you. However, you will know the entity inside out and need to make a thorough assessment to ensure that you are not underinsured. It would not be pleasant to know after an issue occurs, the insurance policy does not respond to the loss event.
Management Liability Insurance Quotes
A quotation can help you understand what is covered and give you an insight into the associated cost of the cover. We are available to answer any questions that you might have so that we can adjust the insurance cover and inclusions to provide you with maximum comfort as you manage the entity.
At Carollo Horton, we strive for excellence and provide the best-value insurance packages. Let our dedicated team talk to you about our directors and officer liability insurance products and services.
Contact us to discuss your business and insurance needs. We service Melbourne, Sydney, Brisbane, Adelaide, Perth and all regional areas of Australia. Call 1300 227 655 or submit an online query now to receive a response as soon as possible.