As workplace discrimination and dismissal claims are on the rise, Management Liability Insurance can help protect your company from financial ruin. Insurance Adviser Margaret Kelly says it is now smoother than ever to gain coverage in one policy.
In recent years companies have seen an increase in regulatory investigations and claims from employees come before the courts including:
• Employment practices liability claims such as workplace harassment, sexual harassment and wrongful dismissal.
• Discrimination claims such as someone is discriminated against on the basis of their sex or racial identity
• Fraud committed by employees
• Breaches of the health and safety act such as workplace injuries.
And when defense costs alone can contribute to a detrimental impact or the financial ruin of a business there has never been such a crucial need for small to medium enterprises to have Management Liability Insurance in place.
But still - take up for this cover is surprisingly low, it is estimated that only 10% of SME companies have Management Liability Insurance cover in Australia indicating that more companies need to know about all the cover out there.
What is Management Liability Insurance?
Management Liability provides protection against the financial exposures that come with managing a company. Coverage extends to cover damages and claimant costs awarded against the company, defence court costs, investigation costs and Civil fines and penalties involved with running the company. This cover help protects the directors, managers and employees of a company against claims as a result of their actions or decisions.
Why take out this policy?
Often, for smaller organisations, the risk of financial ruin is greater in the event of a claim. Larger organisations will have a greater means to deal with unexpected management liability claims, but for smaller - a claim may disrupt a larger company but may push a smaller company to bankruptcy depending on the claim. The right insurance cover is imperative to protecting your business and livelihood.
With extremely competitive premiums for the level of cover that is provided, Management Liability insurance is another way you can have peace of mind.
What does the policy cover?
Management Liability Insurance Policies provide a broad number of covers such as Directors & Officers Liabilities, Allegations of mismanagement, Employment practices liabilities, Statutory Liabilities, Theft and dishonesty by employees, cyber and tax investigation cover.
Findex has access to a large panel of Insurers for Management Liability Insurance with comprehensive coverage and competitive rates available. Talk to us today about how we can help tailor a policy to your business needs.