Illustrative example
A former employee brings an employment-practices claim that falls within the agreed wording. The policy may contribute to approved defence or settlement costs.
Company and decision-maker exposures
Management liability insurance
Running a company can bring allegations against both the business and the people making decisions.
Management liability may combine selected directors and officers, company liability, employment-practices, statutory liability and crime sections for a private company. Each section has its own definitions, exclusions, limits and notification requirements.
Preparing the review
What information usually matters?
- Entity structure, subsidiaries, directors, officers and business activities.
- Employee numbers, workplace policies and recent restructures or disputes.
- Financial position, acquisitions, capital raising and insolvency concerns.
- Regulatory licences, investigations, notices and prior circumstances.
- Existing claims, continuity dates, retroactive cover, limits and excesses.
Important boundaries
Known matters, deliberate wrongdoing, prior circumstances, professional services, bodily injury and cyber events may be restricted or addressed by other policies.
Common questions
Management liability questions
What can management liability insurance include?
A policy for a private company may include selected directors and officers, company liability, employment-practices, statutory liability and crime sections. The actual combination depends on the offered wording and schedule.
Does management liability cover every director or company claim?
No. Cover depends on the claim, the insured people and entities, the relevant section, notification timing, exclusions, limits and other policy conditions.
Why do continuity and prior circumstances matter?
Claims-made sections commonly require timely notification and may restrict matters known before the policy began. Continuity dates and prior-policy notifications should be checked carefully.
Is management liability the same as professional indemnity or cyber insurance?
No. Management liability, professional indemnity and cyber insurance address different exposures, although a claim can involve more than one policy. The business activities and proposed wordings should be reviewed together.