Is Your Management Team Adequately Protected?

The decisions made at the top can shape the future of a business, but they can also carry significant personal risks for company directors and officers. Shareholder disputes, regulatory investigations, and employment practices claims can lead to substantial financial losses and reputational damage.

iO2 Insurance Group understands these challenges and offers comprehensive Management Liability insurance to protect your leadership team and the company itself. Our tailored coverage provides a crucial safety net against a wide range of management liability exposures, allowing your directors and officers to navigate the complexities of business with confidence.

Discover how iO2 can help safeguard your leadership and ensure the continued success of your organisation.

What does Management Liability Insurance cover?

Management Liability insurance, often referred to as Directors and Officers (D&O) insurance, provides financial protection for company directors, officers, and the company itself against a wide range of claims and legal actions.

Directors and Officers Liability

Covers against claims alleging wrongful acts, errors, breaches of duty, or misleading statements.

Company Reimbursement

Reimburses the company for costs incurred in indemnifying its directors and officers for covered claims.

Employment Practices Liability

Covers claims arising from employment-related issues, such as wrongful dismissal and harassment.

Statutory Liability

Protects against personal liability for breaches of certain legislation, such as workplace health and safety.

Crime Cover

Covers losses resulting from fraudulent acts committed by employees, such as theft, or fraud.

Legal Defence Costs

Covers legal fees, court costs, and other expenses associated with defending against claims.

What is typically not covered by Management Liability Insurance?

While Management Liability insurance offers broad protection, it’s important to be aware of its limitations. Certain situations and events are typically excluded from standard policies. Here are some common exclusions:

  • Deliberate Breach of Duty: Claims arising from intentional breaches of fiduciary duty or other legal obligations are generally not covered.
  • Illegal Acts: Claims arising from fraudulent, dishonest, or criminal acts committed by directors or officers are typically excluded.
  • Libel or Slander with Malice: Defamation claims where the statement was made with malicious intent are usually excluded.
  • Antitrust Violations: Claims related to antitrust or competition law violations are generally excluded.
  • Insured vs. Insured Claims (except in specific circumstances): Claims brought by one insured party against another insured party within the same company are often excluded, with certain exceptions, such as derivative actions.

See What Our Happy Customers Say About Our Service

You’ll receive not only the best coverage but also the best service from our dedicated team. Here are just some recent testimonials.

I recommend John to others!

We had a major flood in the shop. John took full control, we were able to relocate our business overnight and continue trading next day.

Peter Wynn

Peter Wynn’s Score

The team is very approachable

As a local business owner, I’ve found iO2 to be professional and thorough. Our business and family area always well looked after.

Shame Tromp

Noosa Optical

Exceeded our expectations

We changed to Insurance policies to iO2 this year and their attention to detail is a breath of fresh air. A happy balance between cover and price.

Hinternoosa Realty

Sunshine Coast

Great savings!

A shout out to iO2 Insurance for their excellent service. We’ve now saved more on our Insurances, peace of mind and savings to boot!

Triona & Anthony Vitagliano

Salt Property Services

They’re true professionals

When we really needed them to come through for us, they went over and above. They provided exceptional cover and care.

Matt Wilson

Australian Cycling Academy

Absolute first class service

When my apartment flooded, I got to see first hand the benefit of not only having the right cover, but also having iO2 handle the entire process.

Adam Khoury

Wealthbridge Property Group

Frequently Asked Questions

While the terms are often used interchangeably, there’s a subtle difference. D&O insurance focuses specifically on protecting directors and officers from personal liability. Management Liability insurance is a broader term that encompasses D&O coverage plus other protections for the company itself, such as entity cover and employment practices liability. Think of D&O as a subset of the broader Management Liability coverage.

While not legally required for all companies in Australia, Management Liability insurance is highly recommended, especially for companies with significant liabilities or those operating in high-risk industries. Even for smaller companies, the potential costs of defending against a management liability claim can be substantial, potentially jeopardising the financial stability of the business. Furthermore, having Management Liability insurance can demonstrate good corporate governance and provide peace of mind for directors and officers.

Several factors affect the cost of Management Liability insurance, including:

  • Company size and revenue: Larger companies with higher revenues typically face higher premiums.
  • Industry: Industries perceived as higher risk, such as financial services or healthcare, may also have higher premiums.
  • Number of directors and officers: The more individuals covered under the policy, the higher the premium.
  • Claims history: A history of claims can lead to increased premiums.
  • Coverage limits and deductibles: Higher coverage limits and lower deductibles result in higher premiums.
  • The company’s risk management practices: Companies with strong corporate governance and risk management procedures may qualify for lower premiums.

It’s crucial to work with an experienced insurance broker like iO2 Insurance Group to assess your specific needs and obtain competitive quotes from multiple insurers. We can help you tailor a policy that provides adequate protection at a price that fits your budget.