What is Management Liability Insurance?

Whether your business is large or small, Management Liability Insurance can help protect you from many of the risks that threaten your daily operations and expose your bottom line. Among the risks your business can obtain cover for are unfair dismissal, bullying and harassment claims made by employees, occupational health and safety breaches, and direct financial losses resulting from acts of fraud or dishonesty committed by an employee or third parties.

Key Highlights

Management Liability Insurance is generally suited to all residential and commercial builders and trade companies looking for protection against financial liability claims that can potentially threaten their operation and cash flow. Management Liability Insurance offered by HIA Insurance Services provides cover for a number of financial risks within one easy-to-manage policy. 

  • 'Statutory Liability Insurance’ can protect businesses against some statutory fines and penalties 
  • 'Employment Practices Liability’ can protect businesses against some unfair dismissal and sexual harassment claims 
  • 'Directors and Officers Insurance’ can protect Directors and executive management when they are sued personally.
 

Why might I need Management Liability Insurance? 

Management Liability Insurance has been formulated to meet the unique risk environment that builders, subcontractors, professional services and manufacturers operate in.

The policy provides important coverage for all businesses so they can guard against potentially large financial liability claims. With Australian businesses subject to a variety of legislation governing their operation, it can be all too easy for these businesses to find themselves in breach, resulting in fines or other penalties being imposed.

What is covered?

Management Liability Insurance cover is provided as one easy-to-use policy that incorporates the following protections:

  • Directors and Officers – provides protection for Directors and executive managers in cases where they are held personally responsible for any actual, or alleged mismanagement while performing duties within the business
  • Statutory Liability Insurance – offers protection to both the business owner and the business itself for fines and/or pecuniary penalties for unintentional breaches of certain statutes
  • Employment Practices Liability – protects businesses and employers against actual or alleged claims brought on by employees involving wrongful dismissal, bullying, harassment and other employment-related incidents
  • Crime – protection for your business against incurring direct financial loss resulting from acts of fraud or dishonesty committed by an employee or third parties

Note that HIA Insurance Services can arrange several different Management Liability Insurance policies that allow you to pick and choose which level of insurance cover is best suited to your business. Speak to an HIA Insurance Services broker for detailed policy cover information.

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Why HIA Insurance Services?

HIA Insurance Services (HIAIS) is a joint venture between the Housing Industry Association (HIA) and Aon. The partnership means HIAIS can combine the construction industry expertise of the HIA with the risk and insurance knowledge of Aon to provide products and advice that are specific to the residential construction industry.

We understand the unique risk exposures of Australian builders, tradies and subcontractors, which means we can offer you policies that are tailored for risks commonly found in the construction sector, as well as fast and efficient claims processes.

Frequently Asked Questions

Simply speak to HIA Insurance Services who will arrange for an application form to be sent to you. Once you have received the form we can provide you with terms from the market. You can call us on 1800 762 878 to get a quote or request a call back through our contact page.

The cost of cover is dependent on the components you choose to include, as well as the size of your business and its exposure to risk. We use our extensive knowledge of the residential construction sector to help determine the right level of cover for your business. 

Management Liability Insurance covers your business for exposures associated with the mismanagement of your company. Professional indemnity insurance helps protect your business against claims made by clients and third parties for advice or services you've provided – and which they allege has caused them loss or damage.

No, you can choose which sections best suit the needs of your business. If you decide not to choose a particular section, your business will not have cover against that risk.