Any successful businessperson will tell you that protecting your personal assets is an essential part of planning your business. Most businesspeople want and tend to keep the two worlds separate – personal assets and business interests.
That’s where management liability insurance comes in. As a business owner, manager, or board member, even a board member of a club or association, you could be deemed personally liable if something goes wrong.
This can be triggered by relatively minor issue that is deemed to be employee discrimination, unfair dismissal or even Internet liability.
Sure, you can take these risks head on and be sure that you don't fall into any liability pits. But, in case it does happen, be prepared to cover any costs arising from a tribunal hearing or a court case.
At Insurance House we recommend our clients talk to one of our experts to learn about the risks and the protection available.
Here are some of the risks you should consider.
- Shareholders - including statutory derivative actions;
- Employees - can claim unfair dismissal, workplace harassment or unnecessary failure to promote or even employ a certain employee;
- Statutory bodies - often followed by a work incident, resulting in investigations, actions can be brought up against you by AU securities and various Investments Commissions, notably with alleged breaches of your duties or directors fiduciary duties;
Obtaining suitable management liability insurance will cover many aspects of your business structure, but the most basic and important are as follows:
- Representation costs - can be required when someone becomes legally required to attend and inquiry trough a court of law, or any investigation concerning the affairs of a certain corporation;
- Legal costs - covering the basic costs and expenses in order to defend and further investigate claims brought up against you;
- Other costs - covers other costs and expenses that would normally be paid by the insured subject, all in order to successfully dispose of claims against you.
Check out our video on Management Liability and call us if you would like to know more. Management liability insurance is designed to protect both your personal assets and the business assets.