Does Your Business Have the Right Management Liability Cover?

Bruce Insurance

Business owners, directors, and managers are faced with risks every day.

To ensure you have a strong safety net in place, insurance is a wise investment. However, taking out just any insurance policy isn’t a viable option.

Management liability cover protects your business and the people who manage it.

If an accident or risk exposure occurs, this type of insurance offers greater certainty for the future security of your business.

Here is some handy information to help you find the right management liability cover quote.

What Management Liability Covers

Management liability protects you and your personal assets against the risk and exposures of running a business.

It covers legal, defense and investigation costs for allegations of misconduct, legislation breaches, and mismanagement. Some examples include:

  • Defamation
  • Statutory breach of duty
  • Sexual harassment
  • Unfair dismissal
  • Theft and fraud by employees including theft of stock and third-party fraud
  • Employment breaches, such as bullying
  • OH&S issues

What’s Not Included?

Typically, the following will not be covered in a management liability policy:

  • Insolvency
  • Known claims and circumstances
  • Bodily injury
  • Property damage
  • Dishonesty/criminal action

Who Needs a Management Liability Policy?

You should consider management liability insurance if you own or manage a business with more than two employees, or if you’re a company director or senior manager.

There is a multitude of risks and exposures business owners, directors and managers face. Many businesses only consider the risks involved with their products and services. However, because business environments are highly regulated and often changing, managing one can come with serious liabilities you must be prepared for.

Management liability cover can offer protection for all industries and business types. It also protects personal and corporate relationships, including with your employees, shareholders, customers, regulators, competitors, and creditors.

Without sufficient protection, you could potentially lose your business, as well as personal assets.

How to Avoid Paying Too Much

Before you get a management liability quote, it’s crucial to know how to avoid paying too much for your policy.

Depending on your needs, your cover can be tailored to suit your business. This also ensures you’re not paying for something you don’t need.

To avoid paying too much, consider the following tips:

  • Get help from an experienced insurance broker. They can assist by navigating you through the complexities to find a policy best suited to the needs of your business and budget. Brokers can also negotiate better deals and understand the risks in your industry
  • Ask about insurance packages and discount opportunities. Combined policies may lower the costs
  • Shop around and obtain at least three quotes to compare prices. Brokers can also help with this to save you time
  • Know what you need and don’t overlook additional coverage options. Regularly reviewing your insurance policies and conducting a risk assessment ensures you’re protected for what’s needed most
  • Always review your cover before renewing a policy. Have prices changed? Has your business needs changed? Don’t assume you need the same coverage as last year, there may be new risks that need to be considered. For example, if you have purchased new machinery, equipment or stock, or if steps have been taken to minimize previous risks, such as installing a new security system

Author Bio

This article is written by Jayde Ferguson, who recommends Bruce Insurance – Western Australia’s leading business insurance broker. You can catch her on LinkedIn.