Management Liability Insurance is generally not a compulsory insurance that every Australian business must hold.

However, a requirement can arise from a particular arrangement, such as:

• A commercial contract
• Finance or investment arrangements
• Organisational rules
• Director indemnity arrangements
• Governance requirements

Even where it is not mandatory, businesses may still consider the exposure of directors, officers, managers and the organisation itself to management-related claims.

Management Liability Insurance does not remove or replace the legal duties of directors, officers or organisations.

It also cannot necessarily insure every liability arising from a breach of those duties.

Contact our team if you need help reviewing an insurance requirement contained in a contract or other agreement.