Why the pressure on premiums
24 September 2020
It is an increasingly litigious world and as a result
Management Liability ( Directors and Officers Liability ) insurance premiums
are increasing, excesses are increasing and terms becoming more restrictive
Whilst the government has stepped in with tighter
regulations around litigation Funders and also amended the corporations act to
make continuous disclosure less onerous it is important to be proactive in
regard to what you can do a as business owner or Director.
How do you get the best results?
Talk to your Risk Adviser at Austral
- Do so as early as possible
- Consider what you need to do to minimise potential insurable risks before they occur ( OH & S, Employment Practices, Cyber Risks)
- Determine what are the residual risk ( the gap) and how you can best manage these ( reputational, fines and penalties for criminal offences and some civil pecuniary penalties, etc.)
What does Managment Liability or Directors and Offers Liability Cover?
A Management Liability policy is intended to cover claims
for start to finish including defence costs incurred. This means that defence costs incurred in a claim will also be covered, including any court attendance costs of an Insured Person, or legal costs relating to an investigation. Once a claim has been finalised, the policy will also cover the settlement or a civil penalty if imposed (except where there is a finding of wilful, dishonest or fraudulent conduct by the company or an Insured Person).
A typical Management Liability policy contains;
- Cover for Directors & Officers & the Company for wrongful acts & employment practices breaches
- Cover for Workplace Health & Safety investigations and penalties
- Cover against theft by employees & third parties
- Cover for tax audit costs