Management Liability Insurance
In an increasingly litigious and complex world, it is more important than ever for companies to protect their financial stability, while individual directors and senior managers avoid or survive lawsuits. Without adequate cover, you not only risk losing your business, or job, but your personal assets, too.
If you tell yourself, “it would never happen to me", or "only in America", think again. Daily headlines across Australia reveal a stream of legal claims involving people just like you who are facing charges to do with harassment, discrimination, wrongful termination – even fraud and embezzlement.
Supervisors at every workplace are especially liable and vulnerable to all types of lawsuits. And, as the number of legal claims increase, the cost of settlements seem to be on a steady rise. Defence and investigation costs alone can be financially crippling for businesses and individuals alike.
Case study: Embezzlement
The culprit was a trusted friend and employee but over a 5 year period this loyal, efficient accountant misappropriated $850,000 by altering cheques received from debtors.
Due to this trusting relationship the theft remained undetected for a long period of time, the fraud continuing through a cycle of paying debtors accounts from other debtors.
This continued until the scheme was uncovered by the company's newly appointed auditors.
- Total loss to the company amounted to $850,000
- There was no chance of recovery from the fraudster as he had no assets and had gambled away the stolen funds
- The investigation and legal costs came to a total of $150,000
Management liability insurance is the single best way to manage these types of risks for you and your company. It can prevent a legal suit or statutory claim from turning into a financial disaster. Put simply, management liability means covering your backside.
Call Moran Insurance Brokers for more information on management liability insurance, or request a quote.