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In this edition

Tax Tips for 30 June
CTP Insurance - At Fault Protection Cover
State of Origin Competition
What happens to your super after you die?
Total & Permanent Disability Insurance - It’s a matter of definition
The “R” word
What are your Management Exposures in your business? Have you got the Management Liability Insurance that you need?

Article brought by Andy Wells

Andrew commenced his insurance career in London during the mid 1960's. He immigrated to Australia in 1970 and continued to be employed in the insurance industry by working for a number of Insurance Underwriters.

In Australia he started as a re-insurance clerk with the United Insurance Company moving on with the various takeovers and mergers with South British and NZI. Whilst with these companies the standard progression of tasks that were performed included Fire Underwriter, Accident Underwriter, Household Underwriter, Surveyor, and also was involved in setting up several computer policy systems.

After 15 years Andrew moved on to GRE as Re-Insurance Manager, then as a ISR and Property Underwriter. Later Andrew was transferred to Parramatta as a Branch Underwriter and Assistant Manager.

GRE was then taken over by Zurich, where Andrew spent the next 7 years before moving on to Broking where he has now been for the past 7 years.

His present position is Senior Account Manager - General Insurance with the Taggart Group Pty Ltd. Andy has successfully completed Tier 1 level for General Insurance & Insurance Broking with The Australian & New Zealand Institute of Insurance & Finance. Andy is a Senior Associate with The Institute and holds CIP status.

Contact details

Website
The Taggart Report
Phone
02 9894 9155
Fax
02 9894 8599
Email
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What are your Management Exposures in your business? Have you got the Management Liability Insurance that you need?

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The law imposes duties upon the directors and officers of companies which they are personally liable for including:

  • To exercise a reasonable degree of care and due diligence in the conduct of their duties and use of the power of their position
  • Not make improper use of information or their position to gain advantage for themselves, or to disadvantage shareholders or the company
  • Act honestly in all of their dealings
  • Prevent the company from trading and continuing to incur liabilities whilst insolvent

A company and its directors face both personal and corporate liabilities from numerous stakeholders including the following:

  • Shareholders
  • Employees
  • Competitors
  • Creditors
  • Regulators
  • Customers Liquidators / Administrators

Even where a director or executive has acted at all times in an honest manner and with appropriate diligence in the performance of their duties, an allegation can be made which must be defended in court

Below is an example of Management Liability Case Study presented by AIG Australia based on a real claim that occurred in Australia:

Jane was a senior employee who believed that she had worked hard and contributed to the success of the business over a significant period of time. Yet when it came to her annual review, she has the impression that she was not offered the same opportunities that she would have received is she was a not a woman. Jane complained to her manager that she was being unfairly treated. Shortly after Jane was dismissed. Jane commenced employment proceeding against the company who ultimately settled the matter with a payment to Jane for an amount in excess of $80000 with legal costs exceeding $35 000.

Having a Management Liability Insurance Policy in place that has been specifically designed to provide cover for a broad range of management liabilities that you may be exposed to is essential in today litigious society.

Please give our office a call to find out if you currently have the cover needed to protect yourself, your company and your assets if a claim was made against you.

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