Did you know that as a company director or senior executive of a privately owned company, you could be held personally liable for the decisions or actions you take in the role?
And if you are found personally liable you risk your own personal assets which can ruin you financially as an individual?
Even if you’ve been operating with best intentions, a simple failure to disclose information, a misstatement or an unintended result can be enough for action to be taken against you. You can also be held responsible for the actions of other employees for whom you are responsible, despite whether you think it’s fair or not.
Some of the threats that directors face can come from:
|Employees||For unfair dismissal, discrimination or sexual harassment.|
|Competitors||For defamation; infringement of patent or copyright; breach of trade practice.|
|Regulatory Authorities||From ASIC for breaches of the Corporations Act; From the ACCC for breaches of the Trade Practices Act; From an OH&S regulator for safety breaches.|
|ATO||For outstanding tax owed by the company.|
|Shareholders||For alleging misrepresentations in financial statements.|
Irrespective of whether you are found liable, or not, the cost of defending a claim can be financially ruining to individual directors as well as the company. And to make matters worse, it’s possible that the Corporations Act prevents your company from indemnifying you for any damages brought against you. It’s a situation you never want face.
Why take the risk when you can be protected with a suitable policy that protects you in all of these incidences? We’ll tailor a suitable management liability policy to ensure your company’s senior people are protected from having to fund their own legal defence costs, damages or pecuniary penalties. In the event the company does pay your legal defence costs, damages or costs, the policy can provide reimbursement to the company.
Why not speak to us and protect yourself and your team today? Call us and see what we can do for you!