Professional & Management Liability

Professional & Management Liability insurance

Management Practices Liability

Management Liability insurance offers a solution to protect the individuals and the company in relation to the exposures associated with managing a company.  

This type of policy is designed for private companies and not-for-profits organisations. Essentially the policy is designed to cover the economic exposures associated with managing a company via the following insuring clauses that protect the individual and the entity against following:

•  Directors and Officers
• Company Cover - for claims against the entity alleging wrongful acts
• Employment - cover for employment breaches
• Trustee - for trustees of staff superannuation fund
• Crime - employee fidelity cover

The policy is designed to cover the economic loss exposures associated with managing a business.

Professional Indemnity

As a professional service provider, a simple act, error or omission can be enough to trigger a complaint against you from one of your clients.

If this becomes a professional negligence claim, the consequences can be serious. You could find yourself liable to pay compensation, costs and expenses. At the very least you may incur legal costs.

You may be exposed where you provide:

• advice, design, consultancy, analysis services. 

Many businesses assume that public liability insurance will cover them. Unfortunately this is not the case. Public liability insurance does not cover claims caused by your professional negligence.

It is important to understand the differences between Public Liability and Professional Indemnity insurance covers as follows:

Public Liability covers:

• claims against you for bodily injury and property damage to a third party that arise from the operation of your business. For example, if a third party is injured on your premises, or if you damage property while visiting a client
• claims that arise from a breach of the duty you owe people in general.

Professional Indemnity insurance covers:

• claims that arise when a third party, usually a client, alleges that your professional advice, design or service was negligent and caused them loss. The loss can be bodily injury, property damage or financial loss.
• claims that arise from a breach of the duty that you owe as a professional or an expert.
• your civil liability that results from the conduct of your professional services.

This includes:

Contractual liability, liability under the Trade Practices Act, defamation, infringement of intellectual property right, liability for the acts of sub-contractors and consultants, compensation and claimant's costs and expenses. 

 Other costs such as legal defence costs are payable in addition to the limit of indemnity.