Management Liability Insuance Analysis
Management Liability Insurance is typically a comprehensive insurance solution that offers various coverage sections to help business enterprises and their managers avoid Management Liability risks.
If you answer “Yes” to any of these questions, your business enterprise may be exposed to Management Liability risks.
Directors and Officers (D&O) Liability
- Do your company’s senior officers have occasional disagreements with customers, creditors, competitors or regulators?
- Has your company been involved in the purchase or sale of any debt or equity securities within the past three years?
- Might at least one former, current, or future shareholder of your company be dissatisfied with the company’s performance or management decisions?
- Is your company contemplating an IPO within the next five years?
- Do directors of your company have close personal relationships with, or strong allegiance to, the controlling shareholder(s)?
- Are your company’s directors and senior officers unfamiliar with your company’s legal obligations, or their own personal legal duties and responsibilities as managers?
Employment Practices Liability (EPL)
- Has your company discharged any employees during the past two years?
- Are any employment decisions made without consulting human resource professionals?
- Have any of your line managers hired or fired an employee?
- Has your company been less than fully successful in building a diverse workforce from the standpoint of age, gender,race, religion, or national origin?
- Does your company lack a comprehensive personnel file for any employee?
- Has your company failed to create and enforce an employee handbook?
- Does your company give references for former employees?
Fiduciary Liability
- Does your company have its own in-house superannuation fund?
- Do officers or employees of your company also act as trustees of the superannuation fund?
- Are the trustees of the plan responsible for monitoring/reviewing the performance of the fund?
Professional Indemnity (PI) Liability
- Does your company provide service(s) for others for a fee?
- Does your company sign service contracts requiring it to carry professional liability insurance?
- Does your service contract fail to address the limit of liability of each contract? Is it limited to the value of the project?
- Does your company distribute promotional material detailing specific professional services that you can provide? If so, does it contain a Statement of Qualifications?
- When conducting a new client presentation, do you specifically reference particular employees who will be servicing that contract? If so, have you ever had to replace an employee on a larger project with another employee having lesser qualifications?
Internet Liability
- Does your company have a web site?
- Does your company collect personal information from visitors to the web site?
- Is any of the content of your company’s web site derived from third parties?
- Could your web site possibly include remarks about your competitors that could be perceived as unfavourable?
- Could your web site possibly include copyrighted material owned by another party?
Statutory Liability
- Are your business activities subject to scrutiny by any regulatory/Government body such as OH&S or Workplace Relations?
- Has your business ever been subject to an investigation/enquiry by a regulatory body?
Please complete the below online form for more information about insuring these Management Liability risks.