Robust management liability coverage will enable your business-owning clients to sleep soundly at night. But how many of them are still operating with D&O coverage without realising they are still wide open to claims? Or worse still, how many haven’t considered the importance of such a policy?
It’s not just big businesses that face the prospect of long, drawn-out court battles over everything from unfair dismissal and regulatory discrepancies to OH&S concerns. SME’s are being drawn increasingly into the quagmire of litigation and business interruption – and the quickly escalating associated costs.
“As soon as businesses start employing staff, have a director or shareholders, or handle money on behalf of third parties, they should look into taking out management liability (ML) insurance,” says David Porteous, General Manager for Brooklyn Underwriting. Porteous says ML has moved on from the traditional D&O liability insurance since federal and state legislations and regulations became increasingly more complex, leaving not just ‘bosses’ at risk of exposure, but employees as well.
“We are seeing the largest number of claims in the management and employment practices areas,” says Porteous. “Employment practices liability insurance can be taken out as part of a package for ML, and can cover things such as unfair dismissal, lack of advancement or even sexual or workplace discrimination. “Anyone who operates a business is exposed to hundreds of pieces of legislation, and businesses are becoming more aware of the sheer breadth of exposures they face in the daily operations of running their business. These days, a ML policy can even extend to cover such things as crisis management, theft and fidelity and pollution defence.”
The demand for ML insurance continues to grow due to increased demands from regulatory bodies and recent changes made to work health and safety harmonisation legislation, coupled with highprofile cases reported by the media. These include investigations of high-profile employment practices claims, such as the David Jones sexual harassment case, employee theft in the form of the $20 million employee fraud at Clive Peeters and OH&S actions across a number of states. According to a recent industry survey conducted by Cameron Research, only 17% of business owners have chosen to protect their owners and directors with the appropriate level of cover. An increasingly litigious business climate is placing a greater focus on this insurance category, with the variety of lawsuits being pursued against business owners by employees, shareholders, creditors or others on the rise.
Brooklyn offers your clients the ideal solution with:
- Broad coverage
- Competitive & stable premiums
- Flexible Excess Options
- Wide appetite including; Private companies, Not-For Profits, Associations, &Partnerships, with a turnover of up to $50m
- Available online NOW or contact an Underwriter
Compiled by Rob Collyer with content from NIBA/Insurance and Risk Professional Magazine.