Yes, it can be.

Directors and business owners of private companies and SMEs can face claims or investigations arising from the management and operation of the business.

The size of the organisation does not prevent allegations being made by:

• Employees
• Regulators
• Shareholders
• Customers
• Competitors
• Other parties

What types of matters can arise? #

Depending on the policy, Management Liability can be relevant to matters involving:

• Unfair dismissal
• Discrimination
• Bullying or harassment
• Alleged breaches of directors’ duties
• Regulatory investigations
• Workplace health and safety matters
• Employee theft or fraud
• Tax audits
• Shareholder disputes
• Claims made directly against the company

Smaller businesses can also have fewer internal legal, HR or compliance resources available when these matters arise.

Is Management Liability compulsory? #

Not generally for every private Australian company.

However, the relevance of cover depends on factors such as:

• Business structure
• Number of employees
• Turnover
• Industry
• Regulatory exposure
• Claims history
• Contractual requirements

Policy sections, limits, excesses and exclusions also vary considerably.

Contact our team if you would like help reviewing whether Management Liability should form part of your insurance program.