As a business owner you are personally liable for most things that go wrong in your business whether you are actually at fault or not, the liability will always be on your shoulders as the owner.
And it’s not just larger businesses that are at risk, small and medium sized businesses can be affected as well, so it is important that you protect yourself and your business.
Investing in management liability insurance can save you from unexpected liability expenses and legal costs from any claims that arise.
To give you an idea of what this insurance can do for you exactly, here are a few of the protections that management liability cover offers.
Employment Practice Liability
When running a business you will have your own inhouse systems for managing employee disputes and ensuring everyone is being treated fairly. However, if any of your employees claim that a wrongful act such as wrongful dismissal, workplace bullying, or discrimination has occured it can be costly to you and your business.
Having management liability insurance cover can protect you by financing the payouts for employment breach claims.
Directors and Officers Liability
As a business owner you are responsible for protecting everyone that works for you including directors, officers and employees.
Having business insurance can help protect your company’s past, present and future directors, officers and managers against claims of wrongful acts, such as misrepresentation or breach of duty.
Crime
There are a range of crimes that can occur in the workplace, so it is important to be prepared. While management liability cover won’t protect against all forms of criminal activity, this cover will protect your business from claims of employee or third party fraud.
There are additional policies you can look into for cover for various workplace crimes, depending on the severity of the crime.
Statutory Liability
Statutory liability covers costs associated with defending and settling claims from outside parties who are alleging wrongful conduct, as well as investigation into the affairs of the company.
This ensures your business can afford to get a high level of legal defence and protection without facing large financial losses which could bankrupt your business.
Defence Costs
If your business ends up in court for any reason it can be expensive to seek legal advice and great defence lawyers. Without insurance, going to court can destroy a small business if they cannot come up with sufficient funds.
Having management liability insurance can protect your business, no matter the size, by covering all the costs associated with going to court.
If you are a business owner and do not yet have liability insurance or are looking to upgrade your policy we can help.
Business Insurance Consulting specialises in a wide variety of business insurance policies including management liability. To learn more about our services and how we can help protect your business, you can visit our website or contact us to request a quote.