Insuring your business risks

Imagine the impact that any one of the following claim scenarios could have upon your business:

  • A personal claim against you by a disgruntled competitor, creditor or shareholder
  • Criminal prosecution as a result of a breach of OH&S legislation
  • Employees, including your most trusted, committing fraud or embezzlement of your funds
  • Allegations of discrimination, harassment, unfair dismissal, etc. by an employee, past or present

Australian Directors have in excess of 600 State & Territory laws that may be imposed on them personally, potentially resulting in damage to their company or professional reputations, loss of personal assets, director disqualification or even a prison sentence.

When thinking about the potential exposures to a business, we tend to only consider the risks associated with the products or services that we provide. However, management these days face tougher than ever restrictions and obligations, while their employees appear increasingly more knowledgeable about their workplace rights. Therefore, it is important to also consider liabilities that may arise from simply managing a business day-to-day.


Australian Management Liability (ML) insurance is a broad-based policy covering a large range of management-related exposures and is an expedient way to ring fence legal exposures.

It protects the past, present and future directors and officers, plus anyone else involved in the management of a company, including managers and supervisors for claims alleging a wrongful act, including employment practices liability, prosecution for WHS incidents, individual fines and pecuniary penalties and costs to attend an inquiry or regulatory matter.


  • An Australian ML policy with a sum insured of $1,000,000 can be purchased from $1,200 (plus taxes)
  • Deductibles are favourable, typically around $2,500
  • Local claims handling expertise (Honan & Local Insurer) becomes available, which is critical when a claim is made against an Australian Director

This product is designed to be tailored to meet business’ specific needs. Limits can be set separately, which ensures a loss from one section doesn’t exhaust the Limit of another section. The following covers can be included within a ML policy:

    Provides cover to the company for actions arising from managerial matters. Many of the claims made against the directors and officers will, typically, be brought first against the company, which is why this cover is extended to provide protection to the company, as well as the directors.
    Provides cover to the company, from claims made by current, past or prospective employees for issues arising from employment practices, including harassment, unfair dismissal and other employment issues. As a result of numerous current Australian laws, notably the Industrial Relations Act, Equal Opportunity Act and the Anti-Discrimination Act, employers face more financial loss than ever as settlement caps increase within Australia and are unlimited in respect of discrimination cases.
    Covers the company for fines and penalties in connection with the operation and management of the business.  Cover also includes costs incurred in defending against such an action. The policy responds to allegations of breaches of acts of parliament including the Environmental Act, Privacy Act, Corporations Act, Fair Work Act, and breaches of Work Health & Safety (WHS) legislation. Note, the highest risk relates to fines relating to Workers Compensation and WHS matters. All Australian States and Territories have implemented the WHS Act. Failure to exercise the required due diligence can result in significant fines and penalties.
    Cover to the company for employee fraud or dishonesty including electronic and computer crime, erroneous funds transfer, destruction and damage to money and negotiable instruments, including other property in a company’s care, custody and control which they are legally liable.
    Tax Investigation/Public Relations/Crisis Containment Additional exposures that can also be insured include reimbursement to the company for external accountant’s costs incurred during a tax investigation by the Australian Tax Office (ATO), or to engage professional assistance and public relations consultants in a crisis.

Specialists in Strata. Experts in managing business insurable risks. Contact us on + 61 8 6557 0400 or to find out more information on ML and how this policy can protect your business management.