Management Liability Insurance Guide
Management Liability Insurance Guide — guidance and information from Ipswich Insurance Brokers, a Steadfast and CBN member broker.
What is management liability insurance?
Management liability insurance covers claims arising from the management of a company or organisation. It typically includes directors and officers liability, employment practices liability, corporate liability and statutory liability. It is relevant for private companies, not-for-profits, associations and family businesses.
What this cover may include
Cover availability and terms vary between insurers and depend on individual circumstances. Subject to acceptance, a policy may include:
- Directors and officers (D&O) liability — wrongful acts in their capacity as directors or officers
- Employment practices liability (EPL) — unfair dismissal, discrimination, harassment
- Corporate liability — claims against the company entity itself
- Statutory liability — unintentional breaches of legislation (where insurable)
Common exclusions to be aware of
The following are commonly excluded under standard policy wordings. Specific exclusions vary between insurers — always review the Product Disclosure Statement before purchasing.
- Intentional dishonest acts
- Prior known circumstances
- Bodily injury and property damage (separate liability policy covers these)
- Insolvency situations (specific limitations apply)
How to arrange management liability insurance through Ipswich Insurance Brokers
- Submit a quote request or contact us directly to discuss your requirements
- We collect relevant information and approach appropriate markets
- We compare policy terms and conditions across insurers and present options
- We arrange binding and issue documentation once you confirm instructions
As a Steadfast and CBN member broker, Ipswich Insurance Brokers has access to a broad panel of approved insurers. We act on your behalf — not on behalf of any insurer. Our remuneration is disclosed in our Financial Services Guide.
General guidance — not personal advice
The information on this page is general guidance only. It does not constitute personal advice and does not take into account your individual circumstances. Before arranging any insurance, you should consider your specific needs and read the relevant Product Disclosure Statement. Our Disclaimer applies to all content on this site.
Frequently asked questions
Does a small private company need management liability insurance?
Yes — management liability is not only for large corporations. Private companies, family businesses, not-for-profits and associations face the same categories of risk — employment claims, regulatory actions, director decisions challenged by shareholders or creditors. The cost of defending these claims without insurance can be significant.
Is employment practices liability important?
Employment practices liability (EPL) covers claims by current or former employees — unfair dismissal, discrimination, harassment and similar allegations. With Fair Work Commission claims a common occurrence for businesses of all sizes, EPL cover is one of the most frequently used sections of a management liability policy.
What is the difference between management liability and professional indemnity?
Management liability covers claims arising from how the business is managed — director decisions, employment practices, statutory obligations. Professional indemnity covers claims arising from advice or professional services provided to clients. Some businesses need both — particularly professional service firms with both advisory and management activities.
What to look for when comparing management liability insurance policies
When reviewing options, the following points are worth considering. This is general guidance — the right approach depends on your specific situation.
Check that the policy covers your entity type — private company, not-for-profit, association or family business structures each have specific considerations. Review the employment practices liability section — this is frequently the most-used section for smaller businesses. Confirm that all directors and officers are covered and that the policy extends to outside directorships where relevant. Review the retroactive date carefully.
For more detailed information, see our Management Liability Insurance page.
About Ipswich Insurance Brokers
Ipswich Insurance Brokers is a Steadfast and CBN member broker operating under an Australian Financial Services Licence. We act on your behalf — not on behalf of any insurer. We compare options across a broad panel of approved insurers, arrange cover, provide documentation and support claims. We are remunerated by commission from the insurer, disclosed in our Financial Services Guide. All information on this page is general guidance only — see our Disclaimer. If you are unsure whether your management liability policy appropriately covers your entity type or all relevant directors and officers, contact us for a review.
Management liability is one of the most frequently used business insurance products in Australia — employment claims alone account for a significant portion of claims. For private companies and not-for-profits of all sizes, management liability provides an important layer of protection. See our Management Liability Insurance page for more information on how we arrange this cover.
Management liability claims can be expensive and disruptive — defence costs alone can reach significant amounts before a claim is resolved. The value of management liability insurance is not just in the event of an adverse outcome, but in the legal support and claims management provided from the moment a claim or circumstance is notified. Notify us promptly if any demand, complaint, regulatory inquiry or circumstance arises that may give rise to a claim under your management liability policy.