To help guide your conversation with a broker, here are ten essential questions to ask when considering Management Liability Insurance for the first time:
1. What types of cover are included in the policy?
Does the policy bundle insurances such as D&O liability, employment practices, or statutory liability? Not all management liability policies are the same, so it’s crucial to know what is included.
2. Who would be covered under this policy?
Determine if the policy extends to current directors, officers, employees, or former leaders. If your business works with consultants or external board members, ask if they’re included as well.
3. What kind of claims could this policy respond to?
Common examples include employee claims for harassment, legal actions over mismanagement, or investigations following an alleged breach of WHS regulations. Asking for real-world scenarios can help clarify how the policy works.
4. Are regulatory investigations and legal defence costs included?
These are often some of the most valuable components of a management liability policy. Confirm whether investigation costs and legal fees are covered, even if the claim doesn’t result in a penalty or judgment.
5. What are the coverage limits, and will these be enough for our business?
Every management liability policy has a maximum amount it will pay out, known as the limit of liability. Check if this limit aligns with the size of your business, the nature of your operations, and the potential cost of defending a claim or investigation.
6. What’s the retroactive date of the policy?
The retroactive date determines how far back the policy will cover past decisions or actions. If your business has been operating for several years, this can be an important consideration.
7. Are there any key exclusions I should be aware of?
Most insurance policies have exclusions, whether related to known claims, intentional wrongdoing, or contractual disputes. Ask your broker to explain what’s not covered so there are no surprises later.
8. How would this policy work alongside my existing insurance?
Management Liability Insurance doesn’t replace public liability or professional indemnity. Understand how this policy fits into your broader insurance program and what gaps it may help to fill.
9. Has our business grown or changed in ways that might affect the cover we need?
If your business has recently taken on more staff, added new services, or changed ownership structures, this may affect your exposure. Discuss how these changes could influence the protection you’re considering.
10. What does the claims process look like if something goes wrong?
Knowing how to make a claim, what documentation is needed, and how support is provided during a stressful situation can give you added peace of mind.
By asking the right questions upfront, you can better understand what insurance solutions might be suitable for your business and make an informed decision.
Speak to your Aviso Specialty broker today to find out more.