Management Liability

Owning and running a business carries with it significant responsibility and risk. Wrongful acts by business owners, dishonest acts by employees, harassment, wrongful dismissal and statutory fines and penalties are just a few areas of exposure that could threaten your business.

Management Liability insurance is designed to protect you, your business and your personal assets.

Management Liability insurance gives you, your senior management and the organisation financial protection from a broad range of circumstances, giving you peace of mind to think ahead, plan with certainty and grow your business.

Management Liability insurance amalgamates traditional stand-alone covers such as Crime Protection, Directors and Officers Liability, Cyber and Privacy Liability, Entity Cover, Employment Practices Liability, Statutory Liability and Supplementary Legal Expenses and Tax Audit.

Please Note: Below are some of the more common insurance policy features, however, the list is not exhaustive and some features may not be offered by certain insurers. Please refer to the insurer-specific policy wording for inclusions, exclusions, terms and conditions.

Covered Features

Corporation Entity

Provides cover where there is a claim against the entity alleging wrongful acts. A claim against the entity can cause the same financial hardship to the owner as a claim made against a named director and officer.


Comprehensive crime coverage provides cover to the company for dishonest acts such as theft and fraud by employees, including theft of stock.

Superannuation Trustees

Provides cover against mismanagement of funds. Also provides cover when a trustee responsibility breach occurs when a company has a sponsored staff superannuation fund.

Employment Practices

Provides cover to the company, directors, officers and employees for claims made by current, past and prospective employees for issues arising from employment practices, harassment, unfair dismissal and other employment issues.

Statutory Liability

Covers the directors and the company for fines and penalties from operating the business including fines related to workers compensation.

Directors and Officers

Provides protection against claims alleging a wrongful act and for which the company does not grant an indemnity. Will protect past, present and future directors and officers, plus anyone else involved in the management of a company.


Andrew Saville

Management Liability


Management Liability Insurance protects businesses and its key staff members against the risks associated with managing a business.

You should consider Management Liability Insurance if you are a business owner, director or senior manager of either a private or unlisted public company. The types and extent of coverage can be tailored to meet the specific needs of you and your business.

With authorities actively pursuing businesses that breach safety standards and fail to show due diligence, an insurance program without Management Liability could leave you and your business seriously exposed to a large financial loss. Management Liability insurance provides: protection of business and personal assets against an unexpected claim, can ensure that your cash flow is unaffected by losses or liability associated with an insured event, can provide the resources to defend against an unexpected claim and provide peace of mind.

Management Liability Insurance can protect you against both personal and corporate liabilities from numerous stakeholders including: employees, competitors, creditors, regulators, customers, liquidators/administrators, shareholders.

There are 14 acts that companies must comply with:

  • The Corporations Act 2001
  • Competition and Consumer Act 2010
  • The Income Tax Assessment Act 1997
  • A New Tax System (Goods and Services Tax) Act 1999
  • Privacy and Data Protection Act
  • Age Discrimination Act 2004
  • Disability Discrimination Act 1992
  • Human Rights and Equal Opportunity Commission Act 1986
  • Racial Discrimination Act 1975
  • Sex Discrimination Act 1984
  • Workplace Relations Amendment Act 2008
  • Work Health and Safety Act, 2011
  • Workplace Relations Act 1996 and Workplace Relations Regulations 2006

Source: ‘It May Happen To Me! The Essential Guide to General Insurance’ by Dr Allan Manning

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