Protecting your small business from management liability risks
Published 12 June 2017
Anyone in business faces a range of risks that need to be managed. Not just the risk of losing money, but, for example, the risk of being sued.
Whether you are the business owner, a director or an officer (executive/manager) of the company, you can be held liable and made to pay for a vast range of errors or failings.
Some of the common areas of risk include:
Sexual harassment – and words can be as costly as deeds – by anybody in the company.
Wrongful dismissal. You may think somebody’s performance or behaviour warrants termination; they may disagree. Or you may simply be following the wrong protocols in the dismissal process;
Injury to your staff from unsafe working environment;
Payment of fees linked to tax audit of your business by the ATO;
Employee dishonesty, eg theft.
Defence costs (fines and penalties) for any of these matters can easily run to hundreds of thousands of dollars.
As your insurance broker, we can help to mitigate your risks and minimise what can be a significant financial impact on your business should the unexpected happen. If you would like to know more or discuss this further, please contact one of our experts and we look forward to assisting you.