Do you have $50,000 to light on fire?

Because that is the average cost of an unfair dismissal claim.

And with the world becoming more litigious by the day, are you protected?

Don't answer the question with a bury-your-head-in-the-sand type statement like;

"It won't happen to me".

Or

"My team are like family".

It could happen to you.

In fact, statistics show it will happen to you.

And it could be costly.

In today's dynamic business landscape, the need for Management Liability insurance is more critical than ever. ML coverage shields businesses and their leaders from the myriad risks associated with corporate governance, including lawsuits alleging wrongful acts, errors, omissions, or breaches of duty.

While Public & Products Liability protects you if your business is sued for injuring a member of the public or damaging property, in a nutshell, Management Liability covers:

• Employment Practices Breaches

If an employee sues you for discrimination or unfair dismissal, or takes you to FairWork

• Statutory Liability

If you are fined for accidentally breaking the law (e.g. COVID-19 restrictions or regulations)

• Directors & Officers

Cover for you personally if you are sued as a director of the business

• Crime

If an employee steals from you

Out of all the Management Liability policy sections, EPL (Employment Practices Liability) continues to generate the largest frequency of losses, accounting for over 40% of all claims (Dual, 2023). Allegations of bullying, harassment, unjust dismissal, and unlawful discrimination have been the regular source of claims.

Without management liability insurance, executives, directors, and officers could be personally exposed to costly legal battles, damaging their financial stability and reputation.

Moreover, in an era of heightened regulatory scrutiny and increasing shareholder activism, even the most conscientious leaders face the constant threat of litigation.

Similiar to Public & Products Liability, ML premiums are rated off 3 key factors:

1. Business Activities (Where have claims historically come from?)
2. Turnover & Staff Size (Bigger the turnover and staff, bigger the risk)
3. Coverage Limits (both primary and secondary)

By investing in management liability insurance, businesses can safeguard their leadership teams against potential liabilities arising from employment practices, fiduciary duties, cyber incidents, and regulatory compliance issues. This proactive approach not only mitigates financial risks but also fosters a culture of accountability and confidence among stakeholders.

In essence, management liability insurance is not just a prudent business decision; it's a vital safeguard for the individuals steering the ship and the organization's long-term success.

So, do you have $50,000 to light on fire?

Be smarter. Get ML.