Liability Insurance protects the individuals and the company / entity (i.e. Company, Association or Non-for-Profit) in relation to the exposures associated with managing a company / entity (i.e. your liability for mismanagement). Without adequate protection you could risk losing, not only the company / entity, but also your personal assets. This insurance protects you personally and therefore your wealth and lifestyle. The legal costs to defend allegations of wrongful acts alone can be financially crippling for companies / entities and individuals.
Many Associations and Non-For-Profits are exposed in this area as often Insurance Brokers do not properly understand Management (Association and Non-For-Profit) Insurance and therefore do not properly outline the risks and craft the policies to suit. In addition, many Associations and Non-For-Profits are not aware of how much personal exposure the CEO, staff, board, committee members, technical committees and volunteers can be liable for.
Do you know?
- The potential for the severity of loss grows as revenue and stature in the company / entity increases. The bigger the company / entity, the bigger the claims tend to be.
- Not only can directors, be held personal liable (exposing personal wealth) but also managers, employees, board members, committee members, technical committees and volunteer committee members.
- As the regulatory environment changes, directors are often unaware of their full responsibilities at law.
- Directors and Board are responsible for the risk management of their company. ASIC has been on the front foot, putting directors and boards on notice.
- A companies / entities reputation and credibility can be damaged if they are investigated, not to mention the ongoing legal costs to defend claims.
In the current economic climate, associations / non-profits have seen an increase in:
- Business failures
- Regulatory investigations
- Employment practices claims
- Employee theft
- Regulatory actions
Management (Association and Non-For-Profit) Liability Insurance Cover can give you peace of mind that if your business is involved in an incident of this type you will be protected.
What does Management (Association and Non-For-Profit) Liability Insurance Cover?
- Damages and claimant costs awarded against you
- Defence (i.e. legal) costs
- Investigation costs
- Civil fines & pecuniary penalties.
Management (Association and Non-For-Profit) Liability Insurance is a packaged product which covers a range of different risks and liabilities. Some examples of claims that can be covered by Management (Association and Non-For-Profit) Liability Insurance include:
- Fraud/Breach of Fiduciary Duty
- Misappropriation of Trade Secrets
- Insolvent Trading
- Unfair Dismissal
- Theft by Employeeor Contractor/Consultant
- Occupational Health and Safety Penalties
- EPA and Pecuniary Penalties
- Wrongful Act/Fraud
- Shareholder Dispute
For more information on Management (Association and Non-For-Profit) Liability Insurance please call AB Phillips on 03 8586 9333 or email email@example.com