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Management Liability Insurance Australia
Protect your business, your managers and your personal assets from claims connected to how your company is run.
Running a business means making decisions every day, and any one of them can lead to a claim against you, your managers or the company itself.
At VIM Cover, we help Australian businesses compare management liability insurance across multiple insurers, so you get a policy that reflects the real risks of running your company. Our job is to give clear advice, structure your cover correctly, and explain your options without the jargon.
We help you make sure:
- Your business and assets are protected from management-related claims
- Your legal, defence and investigation costs are considered
- Certain insurable fines and penalties are addressed, where legally allowed
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Our Insurers
We partner with leading insurers to help find the right management liability cover at the right price.
What is management liability insurance?
Management liability insurance is a combined policy that covers a business and the directors, officers and managers who manage it against the financial loss caused by claims relating to the way the business is managed.
There is risk in day-to-day decisions, in employment and in regulatory obligations. If your business faces an unfair dismissal claim, a regulator investigates a workplace incident, an employee commits fraud, or a director is accused of mismanagement, the legal and financial fallout can be significant, even when the allegation is unfounded.
Depending on the policy and the applicable law, a management liability policy may provide coverage for investigation costs, defence costs, settlement costs and some insurable fines and penalties.
It is frequently mistaken for directors and officers insurance. D&O insurance covers individual directors and officers, whereas management liability insurance is a more comprehensive policy that may cover D&O, company liability, employment practices liability, statutory liability and employee crime cover.
Common claims covered by management liability insurance
Even with good workplace practices, claims happen. A management liability insurance policy can respond to a wide range of risks connected to how your business is managed.
Unfair dismissal
Allegations that an employee was dismissed in an unreasonable, unfair or unlawful way.
Harassment and discrimination
Claims involving workplace bullying, sexual harassment, discrimination or inappropriate treatment.
Work health and safety breaches
Investigations, defence costs and certain insurable penalties following an alleged breach of WHS legislation.
Employee theft or fraud
Loss of money, stock, property or securities caused by dishonest employees.
Defamation
Alleged slander or libel made by or against the business or its management.
Regulatory fines and penalties
Defence costs and certain insurable fines arising from breaches of the laws and regulations businesses operate under.
Note: Cover, limits and exclusions vary between policies. We’ll walk you through the detail before you decide.
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What’s included in a management liability policy?
Management liability coverage can vary between insurers, so it’s important to understand which sections are included, which are optional, and where exclusions apply.
A typical management liability policy may include:
The cost of legal representation when a director or officer has to defend a claim or respond to an investigation. This is often one of the largest and most immediate expenses.
Covers claims made by employees, including unfair dismissal, discrimination, harassment and bullying. This is one of the most common types of management liability claims for Australian businesses.
Statutory Liability
Covers defence costs and certain insurable fines or penalties for unintentional breaches of legislation, such as work health and safety or environmental laws. Some fines, including WHS penalties in certain states, cannot be insured by law.
Crime / Fidelity
Covers the business for loss of money, securities or property caused by employee theft, fraud or dishonesty.
Corporate / Entity Liability
Protects the company itself against mismanagement allegations and disputes, including shareholder claims. This is important because a claim against the company is often made against its directors or managers too.
Tax Audit
Covers accountants’ fees incurred if your business is audited by the Australian Taxation Office. This section may be optional depending on the insurer and policy.
We help you choose the right combination based on your size, structure and industry, so you’re not paying for cover you don’t need, or left exposed in areas you do.
What’s not covered?
No policy covers everything, and being clear on exclusions upfront helps avoid surprises at claim time. We’ll explain exactly what is and isn’t covered in your policy, so you know where you stand before you commit.
Management liability insurance generally does not cover:
- Bodily injury or property damage, which usually sits under public liability insurance
- Deliberate fraud or dishonesty by the insured
- Insolvency or trading losses
- Claims or circumstances already known about before the policy started
- Fines or penalties that are uninsurable by law
- Professional advice or service errors, which usually sit under professional indemnity insurance
Who can bring a claim against your business?
Claims can come from many directions, including:
- Current or former employees, for unfair dismissal, discrimination, harassment or bullying
- Regulators, such as SafeWork or the ATO, following an investigation
- Shareholders and investors, over decisions affecting the business
- Competitors, over alleged unfair or anti-competitive conduct
- Customers and third parties, over alleged mismanagement
- The business itself, through losses caused by employee fraud or theft
You don’t need to be a large company to be exposed. Smaller businesses are often more vulnerable because they are less able to absorb the cost of a drawn-out legal dispute.
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Who does management liability insurance cover?
A management liability policy can help protect:
- The company or business entity itself
- Past, present and future directors and officers
- Senior managers and supervisors
- Employees, in relation to covered claims
That’s why management liability insurance is not only applicable to large corporate boards, but also to business owners, company directors, senior managers and supervisors.
Depending on the type of claim, management liability may be the more appropriate cover if you are seeking personal liability insurance for managers or professional liability insurance for managers.
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Who we arrange management liability cover for
We arrange management liability insurance for businesses of every size and stage, from sole-director companies to established SMEs and larger organisations.
Industries we commonly assist include:
- Trades and construction businesses
- Professional services and consultants
- Allied health and medical practices
- Retail and hospitality businesses
- Manufacturing and wholesale businesses
- Real estate agencies
- Technology businesses
- Labour hire and recruitment businesses
- Not-for-profits and associations
If your business employs people, makes management decisions or operates under regulation, management liability cover is worth considering.
Why business owners choose VIM Cover
If you are a single director or have a large team, the right management liability insurance can help safeguard your business, your personal assets and your reputation.
VIM Cover is an independent insurance broker. We compare options with a panel of insurers, clearly explain the differences and assist you in selecting cover based on your business structure, industry, employees and risk profile.
- Clear advice without the jargon
- Practical recommendations based on how your business actually operates
- Access to multiple insurers
- Real support from quote through to claim
- Australia-wide cover
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“My experience with VIM cover was nothing but professional.”
– Laura Evans
Trusted by Australian businesses
Businesses choose VIM Cover because we’re responsive, easy to deal with and focused on finding the right outcome. We work hard to find the right cover at the right price, and we back it up with ongoing support when it matters most.
FAQ
Popular questions people ask us.
How much does management liability insurance cost in Australia?
Premiums vary depending on your industry, turnover, number of employees, claims history, level of cover and which policy sections are included. The best way to understand your management liability insurance cost is to request a tailored quote.
What’s the difference between management liability and professional indemnity insurance?
Management liability covers claims about how you run and manage the business, including employment, regulatory and fraud-related matters. Professional indemnity covers claims about the professional advice or services you provide to clients. Many businesses need both.
What’s the difference between management liability and D&O insurance?
D&O insurance protects individual directors and officers. Management liability insurance is broader and can include D&O, along with cover for the company itself, employment practices, statutory liability and employee crime.
Who needs management liability insurance?
Management liability insurance is a policy that should be considered by any business that has employees, makes management decisions or is regulated. This encompasses sole director companies, SMEs, growing businesses and larger organisations.Management liability insurance is a policy that should be considered by any business that has employees, makes management decisions or is regulated. This encompasses sole director companies, SMEs, growing businesses and larger organisations.
Can management liability insurance protect managers personally?
Yes, depending on the policy. Management liability insurance may provide coverage for directors, officers and some managers for claims made against them personally in connection with their management of the business.
Is management liability insurance required by law?
Management liability insurance is generally not legally required. However, it is widely considered an important form of risk management, especially for businesses with employees, directors, managers or regulatory exposure.Management liability insurance is generally not legally required. However, it is widely considered an important form of risk management, especially for businesses with employees, directors, managers or regulatory exposure.
Is management liability the same as professional liability insurance for managers?
No. Professional liability insurance usually relates to mistakes in professional advice or services. Management liability insurance is broader and can help protect managers, directors and the company against claims connected to business management, employment practices, regulatory issues and other covered risks.
How it works
Arranging management liability cover doesn’t need to be complicated. With VIM Cover, all you need to do is:
- Tell us about your business
- We compare suitable options
- We explain the differences
- You choose the right cover
- We support you at claim time
Have clear guidance, options and cover from the outset.
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