Management Liability Insurance can address certain claims arising from the way an engineering business, its directors, officers and managers run the company.
Depending on the policy wording, the cover may include sections for:
- directors’ and officers’ liability
- company liability
- employment practices claims
- statutory liability and selected investigation costs
- employee theft or crime
- tax audit costs
For an engineering business, relevant exposures can include recruitment and termination decisions, workplace conduct complaints, alleged breaches of legislation, governance decisions, financial management and the supervision of employees or contractors.
Management Liability is not a replacement for Professional Indemnity, Public Liability, Cyber Insurance or Workers Compensation. Professional advice and engineering services usually need to be considered separately under Professional Indemnity Insurance.
When requesting terms, it is useful to provide the business structure, revenue, employee numbers, ownership details, claims history and information about any current disputes, investigations, redundancies or financial difficulties.
Cover varies significantly between insurers. Limits, excesses, exclusions, definitions and notification requirements should be reviewed before a policy is selected.
For a general Australian overview, see business.gov.au’s guidance on types of business insurance. Company directors can also review ASIC’s summary of company officeholder duties.
