As a director of a private company and owner of the company itself, you are exposed to a number of risks such as:
* breaching directors nd officers duties;
* the company breaching a range of laws and regulations;
* employment practice liabilities (eg. unfair/wrongful dismissal or harassment by other employees);
* crime within the business (eg. employee fraud);
* tax audit investigation expenses;
* statutory liabilities (eg. workplace/OH&S legislation) which can involve criminal prosecutions;
Not only can these risks cause imeediate financial ruin, but also exposure to lengthy and costly litigation.
Just the cost of defending a claim, let aloine any damages and costs awarded against you based on a simple allegation, can be very costly in terms of time and money.
Consider the following;
* the assets of the company being exposed to significant damages, investigation expenses and defence costs.
* pecuniary penalties against you personally and fines against the company;
* theft or fraud by employees, including the cost to investiagte, causing immediate loss to you and the company.
These risks are real for all private companies and are increasingly becoming very common.
You can protect your company and yourself against most of the financial loss arising from these events with a Management Liability Insurance Policy. Talk to one of our experienced advisors or broker who can assist in helping yu and your business obtain the correct insurance cover for you.