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Management Liability Insurance

Do I Need Management Liability Insurance?

If you own a salon and employ staff, you should consider management liability insurance as you need to ensure that you are protected from liability. 

Obtaining Management Liability Insurance shields you from liability when serving in managerial roles such as the following:

  • Supervisors

  • Directors

  • General Managers

  • Other Leadership Positions


This type of coverage typically encompasses policies such as Employment Practices Liability, Crime Insurance, and Statutory Liability. While each type of coverage can be written separately, Management Liability Insurance often comes packaged with some combination or all of these.

Below is a brief and general summarisation of what management liability insurance can protect you from:

Types of Management Liability Insurance

Employment Practices Liability Insurance

EPLI is a broader type of insurance coverage that protects organisations and businesses from violations of employment practices. This coverage keeps management and executives protected from employees across all areas such as current, past, temporary, or seasonal staff, volunteers, and even applicants or interviewees.

The types of violations could be any of the following:

  • Discrimination

  • Sexual Harassment

  • Retaliation or Wrongful Termination

  • Civil Rights Violations

  • Emotional Distress or Intimidation

  • Failure to Hire, Promote, or Advance


EPLI will protect you as a manager for the most part. But depending on the exact terms of your personal responsibility in a suit, it may not fully protect you.

Crime Protection Insurance

This insurance option protects you from multiple types of crime that produce an actual financial loss for the company. Some examples of covered criminal activity are employee fraud, electronic and computer crimes, shareholder criminal activity, third-party crimes, and more. For instance, if client data was stolen due to negligence while you were on duty, you could be held responsible for the data breach.

Depending on the coverage you have, Crime Protection Insurance shields you from any direct financial responsibility in the case of situations like these.

Statutory Liability Insurance

Managers and supervisors can be held liable if a statutory breach occurs within a workplace. A statutory breach is any type of activity that may risk, harm, or endanger employee health or safety, affect worker's compensation, violate the privacy of clients or employees, or break commercial or industrial rules.

The severity of such breaches could yield very heavy fines or other penalties. If you are not adequately covered, this could fall into your own personal financial loss.

Which Management Liability Insurance Coverage Do I Need?

Confused about where to get started? Understanding the intricacies of Management Liability Insurance can seem overwhelming. You don’t want to overpay and end up with more policies than you need. You also don’t want to omit an essential coverage point and leave yourself vulnerable.

Fortunately, you don’t have to go it alone to find what’s right for you.

You can get the help you need with an experienced broker right now. Phone us on 07 3135 7436 to speak with an expert and learn about which Management Liability Insurance is best for you.

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