Management Liability Insurance
2 Docs
What is Run-Off Cover
Last Updated: July 29, 2025Run-off cover is a type of insurance that kicks in after you stop working, retire, or sell your business. Run-off cover extends a claims-made insurance policy, protecting you against claims that arise from past work, even when you are no longer operating. It’s most often used with Professional Indemnity Insurance, which only responds to claims made during the policy period. Without run-off, you could be left exposed if a client brings a claim months or even years after your last job. Run-off can usually be arranged as an annual policy or paid up-front for multiple years. It has a step-down premium calculation, with a rough indication being that for 7 years of run-off cover, the premium will be around 4 times your last insurance premium. For example, your final year premium is $2,000. To obtain 7 years of run-off coverage, the premium will be approximately $8,000. If only one year of run-off cover is required, the premium is generally the same as your final year’s premium, which in this case would be $2,000. ** Note that each insurer operates differently and may offer amounts that differ from the indicated amount. ** Run-off is a smart way to protect your legacy...
What is Management Liability Insurance
Last Updated: June 19, 2025Management Liability Insurance protects business owners, directors, and officers from the risks of running a company. It covers things like: Employee-related claims Regulatory investigations Breaches of director duty, and Fines or penalties (where legally allowed) Tax audit Even with the best intentions, businesses can become entangled in disputes related to unfair dismissal, harassment, tax audits, or OH&S breaches. These issues often name the individual directors, not just the business, making this cover essential for decision-makers. Management Liability Insurance is often packaged with optional extras, such as Crime Cover or Statutory Liability. For more information on how this coverage can benefit your business, please contact our team.