Mount Barker -      08 8391 3400 Adelaide & Reynella -     08 8291 2900 Glengowrie -     08 8295 5540

10 years of Management Liability Insurance and 10 clients very glad they had it!28 April 2017

Around ten years ago the Shield team implemented its first Management Liability Insurance Policy.  Back then, it was a cutting-edge product designed to give SMEs the kind of protection previously enjoyed only by large organisations.

At the time, it was challenging to get SME clients to understand the value of this coverage.  The risks associated with OH&S, employment, crime, Directors and Officers responsibilities were still back-of-mind for most small business owners & managers.  But we could see the risks rising. Our comments to our very first Management Liability policy holder were “you are insured for Public & Products Liability and you see the value of it.  However we think you’re more likely to experience a loss arising from a management liability event. Why wouldn’t you do it?” Thankfully for them, they did!

Of all the liability covers we offer clients, management liability has by far the highest claim frequency.  In our opinion, it is a winner for the SME owner.

Here are ten real instances where Shield clients have benefitted from Management Liability Coverage, where it provided both defence against financial risk and, in some cases, covered fines and settlement costs.

  1. A case where the EPA summarily prosecuted the insured over bulk storage of used paving materials.
  2. A case where the insured was required to provide information to a Coroners Inquiry relating to the actions of staff & the death of an elderly patient.
  3. A case where a dismissed employee took their employer, the insured, to the Equal Opportunity & Fair Work Commissions.
  4. A case where an employee stole money from their employer, the insured.
  5. A case where a manager stole money from the business owner, the insured.
  6. A case where two managers of the insured’s business were involved in a harassment & bullying situation and then both departed on stress leave.
  7. A case related to actual or alleged unfair dismissal levelled against the insured (a very common scenario).
  8. A case where Safework SA investigated & sought to prosecute the business owner, the insured, relating to a workplace accident involving a forklift.
  9. A case against a Company Director involving the provision of misleading information.
  10. A case where a manager used their position to gain personal advantages in the insured’s business.

Any one of these scenarios might easily play out in workplaces across Australia on any given day.  Management Liability Insurance provides immense peace-of-mind for the SME owner & manager. In our opinion, it is now a must-have cover.

Call one of our brokers to discuss how management liability cover can protect your business.

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