What is Management Liability Insurance?
What is Management Liability Insurance? Ever asked yourself the question? When running a business, there are so many things to consider. From where to establish your offices, which accounting systems to use, whether you can afford to hire any staff. Who your accountant will be, which procedures and systems you’ll put into place, how you plan to advertise, and much much more.
But did you know that many business owners forget to consider one of the most important things of all?
We’re talking about insurance. Yep, because just like in life, in business, there are so many things that could go wrong. Which is why, preparing for a rainy day and covering your business for any risks along the way is crucial. This makes business insurance one of the most important investments.
There are many different types of insurance for your business too, and depending on your individual business. There will be policies you need, and policies you don’t. Management Liability Insurance is just one of them.
What is ML?
In short, Management Liability Insurance protects you and your business against the risks and exposures of running a business. Such a policy offers cover for a range of managerial risks, and the policy can be tailored to the unique needs of you and your business.
Why is ML Insurance important?
Directors and officers face both personal and corporate liabilities in managing a company and can be held personally liable. And so, without Management Liability Insurance, you could risk losing, not only your business but your personal assets too.
Why? Because the legal costs to defend any allegations for your business can be extremely financially crippling and not something a business owner ever wishes to face.
What does Management Liability Insurance cover?
ML Insurance can cover:
- Damages and claimant costs awarded against you
- Legal costs
- Investigation costs
- Civil fines and pecuniary penalties
The main areas that Management Liability Insurance covers are:
- Directors and Officers Liabilities
An example of a claim under this area is fraud or insolvent trading.
- Employment Practices Liabilities
An example of a claim under this area is bullying, harassment, or unfair dismissal.
- Statutory Liabilities
An example of a claim under this area is Occupational Health and Safety penalties.
- Crime Cover
An example of a claim under this area is theft by an employee or contractor.
- Corporate Entity Liabilities
An example of a claim under this area is a Shareholder dispute.
- Legal Representation Costs
An example of a claim under this area is an ASIC enquiry.
- Tax Investigation
An example of a claim under this area is a tax investigation.
What type of businesses require Management Liability Insurance?
It is recommended that all businesses at least consider a product like ML Insurance, in order to protect themselves from expensive legal costs.
The size and structure of your business and the level of associated management risks will help determine which type of policy may be right for you.
Find out if your business needs Management Liability Insurance
Liability claims can be extremely costly, so if you’re a business owner and don’t currently hold a policy, it’s important to speak to an insurance broker to find out whether you may need one.
Find out more about Management Liability Insurance and read some FAQs for business owners here.
Grace insurance is here to find out more about you and your business and advise you on which type of insurance you may need for your business. We can provide you with an obligation free quotation on these insurances too.
Contact Grace Insurance in Landsdale, Wangara, Joondalup, Whitfords located north of Perth today.