Commercial Legal Expenses Insurance and Management Liability Insurance can both provide protection involving legal disputes, but they are designed for different types of risk.

The policies can sometimes overlap, which is why each matter should be considered against the actual policy wordings.

What is Commercial Legal Expenses Insurance designed to cover? #

Commercial Legal Expenses Insurance is generally focused on specified legal disputes and the associated approved legal costs.

Depending on the policy, this can include matters such as:

• Commercial contract disputes.
• Debt recovery.
• Employment disputes.
• Property or tenancy disputes.
• ATO investigations.
• Statutory licence matters.
• Certain regulatory proceedings.

Some sections can cover the business pursuing another party, rather than only defending a claim.

What is Management Liability Insurance designed to cover? #

Management Liability Insurance is generally designed to protect a company and its directors, officers and managers against certain liabilities arising from the management of the business.

Depending on the policy, this can include sections covering:

• Directors and officers liability.
• Employment Practices Liability.
• Statutory Liability.
• Company liability.
• Crime or employee dishonesty.
• Tax audit costs.

The exact structure varies between insurers.

Where can the policies overlap? #

Employment disputes and some regulatory or tax-related matters are examples where both policies may potentially contain relevant cover.

That does not mean both policies will automatically respond.

The circumstances of the claim, the insured parties, the type of loss being claimed, exclusions and notification requirements all need to be considered.

Do I need both policies? #

There is no single answer for every business.

Commercial Legal Expenses Insurance can complement Management Liability Insurance by addressing legal disputes that may fall outside the liability-focused sections of a Management Liability policy.

Webber Insurance can review the policies together to identify duplication as well as gaps in cover.