The W. R. Berkley product detailed below is just one example of a product which can cover Management Liability exposures for sole traders. If you are concerned about some of the below exposures, please contact us to discuss Management Liability further.
Management Liability (ML) was developed after the realisation that Directors and Officers provided limited coverage for and was not suitable for Private Companies.
Similarly, Berkley Insurance Australia has developed Sole Traders Management Liability because Private Company Management Liability policies are not suitable for Sole Traders.
Some Insurers have attempted to endorse their standard private company ML policies to cater for Sole Traders in a futile attempt to force an unsuitable policy on Sole Traders. Companies are incorporated and as a result, their ML policies require company reimbursement clauses. Sole Traders by their very nature are not incorporated and, therefore, require a bespoke ML contract – called Sole Traders Management Liability, or STML.
Berkley Insurance Australia is proud to provide the bespoke STML which includes the following features:
- Simplified Insuring Clause – no need for Company Reimbursement as it’s not relevant.
- Amended, specific definition of Named Insured
- Advancement of Costs and Emergency Defence Costs
- Pollution Costs
- Fines and Penalties
- Workplace Health and Safety Costs
- Continuous Cover
- General Inquiry Costs
- Extended Reporting Period
- Extradition Bail Bond Costs
- Deprivation of Assets Expenses
- Prosecution Costs
- Public Relations Expenses
- Crisis Costs
- Employment Practices Liability Coverage (still required as sole traders can have employees)
- Third Party Discrimination or Sexual Harassment Coverage
- Attendance Compensation
- Tax Audit Costs – extended to cover any Tax Audit of the Insured Sole Trader whether in business or personal. Also includes ATO Risk Reviews.
- Employee Theft and Third Party Crime – Insured must maintain operate separate business and personal banking accounts
- Theft and Crime Investigation and Data Reproduction Costs
- Identity Fraud Expenses
- Internet Liability
- Runoff cover for Takeover and Merger-valuable in the event the Sole Trader decides to incorporate into a Company.
source: W. R. Berkley