As a business owner or manager you have an ever widening range of responsibilities to ensure you comply with regulations and Acts. A Management Liability policy can help protect both your business and personal assets from a range of exposures that aren’t covered by a normal public liability policy.
Some of the main areas a Management Liability policy covers are:
- Directors & Officers Cover – covers defence costs & damages from alleged wrongful acts
- Employment Practices Liability – wrongful termination, harassment, workplace bullying
- Statutory Liability – fines & penalties due to contravention of various Acts
- Company Expenses – covers the company for costs incurred in defending third party claims
- Can also cover fidelity losses (employee dishonesty) and accountants expenses due to a tax audit
Management Liability Claims Scenarios
Claim Scenario 1
On their first day of employment two construction workers were seriously injured when a one tonne steel frame they were loading fell from its supporting cradles and struck them. The Commission ruled that the workers had received inadequate instruction and minimal supervision. The company was fined $107,000.
Claim Scenario 2
A man died when operating a tractor at a poultry processing plant. He was found pinned between the right rear wheel of the tractor and a water tank stand. He had not received any training in the use of the tractor’s hand throttle, and had not been provided with any written instructions on how to operate the vehicle in either English, or his first language, Cambodian. The plant operator and the labour hire company were convicted and fined. The poultry company was fined $159,250 and the labour hire company was fined $217,000.