Management Liability Insurance (ML)

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Why buy
Management Liability Insurance ?

Running a business unfortunately requires you to worry about more than just your services to your customers.

You also have a range of other things related to the business to keep on top of, things like making sure you meet all your statutory obligations, that your employment practices are fair, and your financial reporting and tax liability, to name just a few.

Even worse, you can be presonally liable for breach of these obligations and they are changing all the time.

What is Management Liability Insurance ?

ML is a policy that packages a few different covers together which all relate to the management of your business. It usually includes:

Director and officers liability, which covers your personal liability which comes out of management of the business.

Employment Practices Liability, which covers your liability from employment of your staff. 

Tax Audit, which covers your liability for accountant’s fees to an audit by the tax office.

What is Covered?

Tipically it covers things like:

Statutory fines and penalties

Costs associated with investigations by regulators

Damages and awards against you, together with legal defense costs

Liability for claims by employees for wrongful dismissal, bullying or harassment

Accountants’ fees fortax audits

What is not covered?

Examples of typical exclusions are:

Losses arising out of prperty damage or personal injury

Fraud or deliberately unlawful acts by you

Claims from insolvency of your company

Claims or circumstances that you knew about before you accepted the policy

How much does Management Liability insurance cost?

There are few factors that determine what your policy will cost:


1Factor 1 – which covers you choose, you can choose any combination of the three covers, but obviously you pay for each one that you choose.

2Factor 2 – the size and type of your business, the bigger your revenue, the more insurers charge for Directors and Officers Liability insurance and Tax audit, and some types of business also have more exposure to losses than others.

3Factor 3 – the number of employees you have, if you choose Employment Practices Liability, the more employees, the higher the premium

4Factor 4 – the amount of insurance (the limit) you choose. With Fusion ML you can choose for each cover, the more you decide to buy, the more it costs:

    • Directors and Officers – between $250k and $5m
    • Employment Practices – between $250k and $2m
    • Tax Audit – between $10k and $50k