Management Liability Insurance

Management Liability

Protecting you and

your sport

Protecting you and

your sport

Remove the uncertainty

Review before your Renew

Risks are inherent in all areas of sport.  Directors, Officers and committee members understand that they may on occasion find themselves the subject of a legal claim. Sports management liability insurance protects associations/clubs and their individual directors, officers and committee members.

Risks are inherent in all areas of sport.  Directors, Officers and committee members understand that they may on occasion find themselves the subject of a legal claim. Sports management liability insurance protects associations/clubs and their individual directors, officers and committee members.

Remove the uncertainty

Review before your Renew

What is Management Liability insurance?

When you’re running a sporting organisation, you may be personally liable for any actual or alleged breaches of the Corporations Act. And it’s not just large organisations that are exposed – small and medium sporting bodies and officers and committee members could be at risk as well.

Sports management liability insurance covers the costs of defending directors, officers, committee members and employees against any claims that are the result of their actions or decisions.

Who should consider it?

If you are faced with unexpected liability costs, management liability insurance can protect your organisation and personal assets, such as your home, from being sold to cover the cost of paying claims.

HDL, the right partner for you.

  • Renowned expertise & accountability
  • Stability & consistency of approach
  • Managing complexity
  • Integrated broking and claims
  • Building trust through service
  • Delivering on promises

Seek advice from HDL

The Association Act of 2009 introduced increased penalties for Director and Officers who breach their legal duties. Examples of such breaches are:

  • Conflict of interest
  • Misuse of knowledge gained on Board
  • Misuse of position on Board
  • Trading while insolvent
  • Complicit involvement

Generally, Management Liability insurance policies are designed to meet the needs of a Pty Ltd company.

For Not for Profit Associations, an Association Liability policy may be more suitable and will generally include Professional Indemnity cover to protect against errors and omissions claims that may occur in the provision of advice and training, although it is important to understand that this policy generally does not replace public liability or professional indemnity insurance for coaches and officials as standard association liability insurance excludes bodily injury and property damage.

Coverage under an Association Liability policy is generally extended to include the association and its directors, secretaries, officers, trustees, committee members, employees, volunteers and any individual acting for the association at the direction of a board or management committee of the Association.

Not all policies are the same.  Exclusions, the excess you need to pay and limits of liability can vary greatly depending on your insurer.  That’s why our our specialist broking team members get to know you, enabling them to provide considered advice delivering you the best policy for your specific needs.

Touch base with us to learn how we can help you.

What can it cover?

Management liability insurance policies vary in the benefits they provide. To give you an idea, here’s the type of cover that your policy may include:

Type of cover Potential benefits
Employment practice liability
Covers payouts for claims of employment breaches, such as wrongful dismissal, bullying or discrimination.
Directors’ and officers’ liability
Protects your proprietary limited company’s past (or associations), present and future directors, officers and managers against claims of wrongful acts, such as misrepresentation or breach of duty (subject to business size).
Crime
Protects your business against claims such as employee or third party fraud (not all criminal activity is covered).
Corporate/
Association liability
Covers costs that your organisation would incur if you need to defend and settle claims from outside parties alleging wrongful conduct, as well as investigation into the affairs of the organisation.
Statutory liability
Covers the cost of defence, fines and penalties under some statutes e.g. Work Health and Safety (fines under Work Health and Safety cannot be covered by insurance in NSW).
Defence costs
Covers your legal costs if your business ends up in court.
Professional Indemnity
(Provided under an Association Liability Policy) Covers the association from a breach of professional duty resulting in a financial loss. This includes cover for the handling of memberships, creating and managing curriculums, setting policies and guidelines, etc. as well as the provision of advice at seminars, or through newsletters, websites, workshops.

Case study

A former employee claims they were wrongfully dismissed because they were unwell at the time their position was terminated. They want to be reinstated to their role and remunerated for their loss of income while they were out of work. After numerous unsuccessful conciliation attempts, the matter is brought before a court and you have to pay damages to your former employee.

A Management Liability policy allows you to recover some or all of these costs. Depending on your policy, you may be able to make a claim for your legal defence costs, as well as the amount paid to your former employee.

Complimentary Review

Review before you Renew

Complimentary Review

Securing optimal insurance protection is becoming more challenging.

Having a fresh set of eyes can make a dramatic difference.  HDL welcomes the opportunity to evaluate and challenge your current risk and insurance program in a confidential manner that avoids disrupting existing relationships.

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Our Global Insurance Network

Over 150 Insurers across the globe.

aig2
allianz
Berkley
CGU
Chubb logo
gt-insurance
Hollard-logo
IAL
lloyds-v3
nit
qbe
vero
zurich2