 Australian
Marketing Institute
Management Liability Insurance
The Australian Marketing Institute has negotiated an exclusive Management
Liability insurance facility, through Austbrokers Countrywide, that offers
very competitive discounted prices for marketing professionals.
What is a Management Liability Insurance Policy?
Historically, these products have been known as a Directors & Officers Liability
Insurance, which was designed to protect the personal assets of directors and
officers by providing indemnity for any loss arising from a claim as a result of
a wrongful act committed in the course of them performing their management
duties. The product has now evolved to cover a whole range of management
liability exposures. The mains areas covered under the Management Liability
policies include:
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Directors & Officers Liability Insurance – protects the Directors &
Officers against claims resulting from management decisions. Directors face
liabilities under Corporations Law, Trade Practices Act, Environmental
legislation and a variety of government bodies and statutes (e.g. ATO and ACCC).
Both Executive and Non Executive Directors can be held liability for actions of
the company at a personal level which can put at risk personal assets.
-
Employment Practices Liability Insurance – protects the directors and the
company from claims brought by employees for things such as unfair dismissal,
harassment, discrimination and/or unfair work practices.
-
Fidelity Guarantee Insurance – protects the company from direct losses
resulting from employee theft.
-
Statutory Liability Insurance – protects directors and the company from
statutory civil fines and penalties where at law the insurer is able to pay (e.g.
OH&S fine following a workplace injury).
Examples of risks that are covered under each section
| The Risk |
Management Liability Coverage section |
| Investors, customers, clients, government regulators, and competitors can sue a
firm’s board members and officers over their actions or decisions. |
Directors and Officers Liability Insurance |
| Employees and formers employees can sue a firm, its board members and its
officers for discrimination, harassment, and other illegal employment practices. |
Employment Practice Liability Insurance |
| A regulatory/Government body may impose a fine upon the company for breach of
their statutory requirements. |
Statutory Liability |
| A trusted employee can embezzle funds, steal company money, or commit fraud over
a long period of time. |
Fidelity Insurance |
What does the policy exclude?
These policies typically exclude someone who holds more than 15% of the shares
from being able to sue another director and obtain cover under the policy. They
typically exclude bodily injury and property damage claims. The reason for this
is the company already has a general insurance program in place.
For more information, please complete the form below and a member of our
team will contact you to further discuss your specific insurance requirements.
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