Directors and Officers Insurance
Management Liability
Protecting business leaders, management decisions, and the financial health of your organisation
Running a business means more than managing profits-it also means navigating legal, regulatory, and reputational risks. Whether it’s a shareholder dispute, employee allegation, cyber breach, or compliance investigation, the financial and personal fallout for directors and officers can be significant.
Management Liability Insurance is designed to protect private and mid-sized businesses—and their management teams-from a range of exposures that arise from running a company. It typically combines cover for Directors & Officers (D&O) liability, company liabilities, employment-related claims, statutory liability, and crime, among others.
For larger or more complex businesses (typically those with turnover exceeding $100 million), it is best practice to arrange standalone policies for each core risk-including D&O Liability, Employment Practices Liability, Crime/Fidelity, and Statutory Liability-to allow for higher limits, broader coverage, and international jurisdiction considerations.
What Does Management Liability Cover?
Management Liability is typically a packaged policy that combines multiple essential covers into one, helping privately held businesses manage both entity-wide and personal liability exposures.
Directors & Officers (D&O) Liability
- Covers directors, officers, and key decision-makers for claims made personally against them for actual or alleged wrongful acts
- Common claims: breach of duty, misrepresentation, governance failures, regulatory investigations
Company Liability (Entity Cover)
- Covers the company itself for wrongful acts such as mismanagement, misleading conduct, or regulatory breaches
- Often triggered alongside D&O claims
Statutory Liability
Covers fines and penalties (where legally permitted) imposed on the business or directors due to unintentional breaches of legislation
Common statutes include:
- Workplace Health & Safety (WHS)
- Environmental laws
- Fair Work Act and ASIC reporting requirements
When is Separate Cover Recommended?
For larger or more complex businesses-generally those with:
- Over $100 million in turnover
- International subsidiaries or offshore operations
- Listed boards or external investors
- Complex ownership or governance structures
- High-profile executives or directors
…it is advisable to separate key areas of cover, including:
Employment Practices Liability (EPL)
Covers claims relating to employee disputes, including:
- Bullying, harassment or unfair dismissal
- Breach of employment contract
- Discrimination or failure to promote
Includes legal defence and settlement costs
Company Reimbursement
- Reimburses the business when it indemnifies directors or officers in connection with covered claims
Tax Audit Cover
- Responds to the costs of managing an ATO audit or investigation
- Covers professional fees such as accountants or tax agents
Crime / Fidelity Cover
- Protection against internal and external theft or fraud
- Includes employee dishonesty, fraudulent electronic transfers, invoice scams, and third-party crime
| D&O Liability | Standalone D&O policy | Greater coverage scope, higher limits, cross-border protection |
| Employment Practices | Separate EPL policy | Customised to your workforce and jurisdiction-specific risks |
| Crime/Fidelity | Standalone crime policy | Stronger sublimits, tailored to evolving fraud exposures |
| Statutory Liability | Dedicated statutory cover | Allows more comprehensive defence and penalty protection |
This modular strategy gives large businesses more robust, scalable protection and precise claims servicing across each liability category.
Why It Matters
- Shields directors and officers from personal liability exposure
- Ensures business continuity when facing investigations or lawsuits
- Supports stronger risk governance and board recruitment
- Enhances credibility with investors, clients, and regulators
- Scalable for SMEs, family businesses, and large private enterprises
Who Needs Management Liability or D&O Cover?
- Private and family-run businesses
- Growing or investor-backed start-ups
- Not-for-profits and associations
- Organisations with a board or advisory panel
- Businesses operating in high-risk legal environments
Get in touch
Let’s Safeguard Your Business and Its Leadership
Protecting business leaders, management decisions, and the financial health of your organisation.
Related Insurance Services
We offer wide range of other Insurance services.
Business Insurance
Construction Insurance
Cyber Insurance
Domestic Insurance
FreightInsure
Industrial Special Risks
Management Liability
Marine, Transport & Logistics Insurance
Plant & Equipment
Professional Indemnity
Rural & Farm Insurance
Strata Insurance
Workers Compensation