Management Liability

Management Liability Insurance for Australian Businesses

Covers claims against the people who run the company, and against the company itself, for how it was run. Directors can be personally liable in Australia, and that liability does not stop at the company’s assets.

What it covers

  • Claims against directors and officers personally
  • Employment practices claims, such as unfair dismissal or discrimination
  • Statutory liability, including some regulator investigation costs
  • Employee theft and fraud, under most policies

What it does not

  • Bodily injury or property damage — that is Public Liability
  • Professional advice to clients — that is Professional Indemnity
  • Conduct already known about when the policy started

What an insurer will ask you

These are the real questions, and why each one changes your premium. Our chat walks through them with you.

Do you have written employment procedures given to each employee?

Employment practices claims are the most common claim under this cover by a wide margin. A documented process is the main thing that defends one, and insurers price accordingly.

Is dual authorisation required on all payments?

Employee fraud is usually a control failure rather than a sophisticated scheme. One person able to raise and approve a payment is the exposure insurers ask about first.

Are duties segregated, so the same person cannot prepare, sign and reconcile?

The same reasoning. Separation of those three jobs is what stops a small theft going unnoticed for years.

Do all directors hold a Director ID?

It has been a legal requirement in Australia since 2022. Insurers treat it as a basic indicator of how closely the company follows its obligations.

Tell us what you do, and we will take it from there.

No forms. Answer a few questions in chat and an authorised broker takes it to the market for you.

This page is general information only and does not take your objectives, financial situation or needs into account. Consider the Product Disclosure Statement before deciding. Cover is subject to the insurer’s terms and acceptance.