Management Liability Insurance
Redwood Insurance Brokers makes management liability insurance clear, practical, and matched to how your business is actually run. We help protect the company and its decision-makers against certain allegations, investigations, and defence costs, and we structure the policy to fit your size, staffing, governance reality, and claims-made requirements. If something goes wrong, we back you and help drive the claim through.
Why management liability insurance matters
Running a business means making decisions about people, money, contracts, and compliance. If those decisions are challenged, the cost is often legal defence and time, even before you get near an outcome.
Management liability insurance is designed to help protect directors, officers, managers, and sometimes the entity itself from certain claims, investigations, and allegations, subject to policy wording.
Plain-English takeaway: it is liability protection for the management layer of your business.
What management liability can include (common components)
Management liability is often packaged. Depending on insurer and wording, it may include:
Directors and officers style cover for alleged wrongful acts in governance and management
Entity cover where available
Employment practices liability for allegations such as unfair dismissal, discrimination, harassment, and bullying (policy dependent)
Statutory liability component for defence costs and, in some cases, certain penalties where legally insurable for unintentional breaches (policy dependent and subject to New Zealand law)
Fidelity or crime cover for employee dishonesty (sometimes included, sometimes separate)
Tax audit or investigation extensions where available
We’ll talk through your structure, staffing, and compliance environment, then recommend the right configuration and limit.
What management liability can include (common components)
Management liability is often packaged. Depending on insurer and wording, it may include:
Directors and officers style cover for alleged wrongful acts in governance and management
Entity cover where available
Employment practices liability for allegations such as unfair dismissal, discrimination, harassment, and bullying (policy dependent)
Statutory liability component for defence costs and, in some cases, certain penalties where legally insurable for unintentional breaches (policy dependent and subject to New Zealand law)
Fidelity or crime cover for employee dishonesty (sometimes included, sometimes separate)
Tax audit or investigation extensions where available
We’ll talk through your structure, staffing, and compliance environment, then recommend the right configuration and limit.
Management liability vs D&O (what’s the difference?)
D&O is often a standalone policy focused on directors and officers. Management liability often combines D&O-style protection with components of employment and statutory liability.
Plain-English takeaway: management liability is usually broader for SMEs, but the details vary. We help you compare what you are actually buying.
Claims-made cover (the part that matters for continuity)
Many management liability policies operate on a claims-made basis, especially the D&O-style sections. That generally means the policy in place when the claim is made responds, not necessarily the policy in place when the event happened, subject to wording and notification requirements.
Plain-English takeaway: continuity matters. We help you avoid accidental gaps and late notification issues.
The gaps we look for (so you don’t find them mid-claim)
This is where a broker earns their keep. We check for:
Who is insured (directors, officers, managers, employees) and how those roles are defined
Correct entity naming and structure (company, trust, subsidiaries, trading entities)
Employment practices triggers, including what counts as a claim and when you must notify
Statutory liability scope, including what legislation is included or excluded and what is legally insurable
Prior acts, retroactive dates, and how far back the cover reaches
Key exclusions such as dishonesty, deliberate conduct, known circumstances, and professional services
Limit adequacy because defence costs can burn through limits quickly
Overlap or gaps with professional indemnity, cyber, and public liability
If there is a gap, we will tell you straight and explain the practical options.
How Redwood does it differently
Independent
We compare options across insurers and recommend the best fit for your business and risk profile.
Advice, not just a quote
We explain what the policy does, and what it does not do, in plain English.
A sharper risk lens
We look for governance, employment, and compliance exposures that catch businesses off guard.
Claims advocacy
If you need to claim, we help notify early, present the claim clearly, and keep momentum.
Fast-moving
You deal with people who can make progress, not a maze of hand-offs.
Our process (simple, on purpose)
Quick chat: structure, decision-makers, staff, and compliance risks
Review: current cover (or start fresh)
Recommendations: clear options with differences in limits, deductibles, key terms, and conditions
Placement: we organise the policies and confirm key details
Ongoing support: changes, renewals, and claims help
If you need to claim
Management liability claims can be complex and time-sensitive. We help you:
Understand what to do first and notify correctly
Gather the right information without overcomplicating it
Manage communication with the insurer and advisers
Keep momentum and reduce disruption to the business
Push for a fair outcome
Want a free second opinion on your managment liability insurance?
Bring your current policy (or just tell us what you want covered). We’ll review it, explain what matters, and show you options.
FAQ’s
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Often yes if you employ staff, have investors, operate in regulated areas, or want personal protection for directors and managers. We’ll help you assess the risk realistically.
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Not always. Management liability often includes D&O-style cover plus employment and statutory liability sections, but the structure varies by insurer.
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It can, depending on the employment practices section and wording. We’ll explain what triggers a claim and what is commonly excluded.
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No. Deliberate or dishonest conduct is generally excluded. Some policies may advance defence costs until facts are established, depending on wording.
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It depends on your size, exposure, and stakeholder risk. We’ll recommend a sensible range based on your situation.
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No. We help SMEs, not-for-profits, and growing businesses. This page is focused on NZ management liability advice.