Management liability: An Australian experience

Management liability insurance is one of the more complex and confusing insurance products in the financial Lines insurance market. It's hard to find a policy under 40 pages long, but why is this critical product so confusing, and why are the policies so long? Why has the market experienced a sharp correction in pricing and appetite recently and what does this mean for small and medium sized enterprises (SMEs)?

This paper attempts to unravel some of the mysteries surrounding management liability insurance by explaining what the product is designed to cover with reference to case studies and industry data, by detailing how the product developed over time and how the financial lines market is likely to develop into the future.

Furthermore, this paper discusses DUAL's experiences in underwriting this class of business and why for some, management liability isn't the panacea to all their problems.