A management liability policy can help cover your farm from the risks associated with running a business.
The policy, which can be included in a farm insurance bundle, offers cover for a range of areas such as:
- Breaches of OH&S regulations and/or breaches of state industry regulations in the operation of your business
- Tax audit expenses
- Financial crimes within a business such as fraud or embezzlement
- Employment practices claims leading to legal action such as unfair dismissal proceedings or harassment
“Management liability is a huge risk for farmers,” Kylie Hull, an Area Director at Gallagher based in Dubbo, states.
A simple act, error or omission in managing your business can be enough to cause a financial loss to you or your company. This is where management liability insurance can help".
If a loss occurs, the focus is on your conduct as a manager and as a company. Even if you think that a claim has no basis or merit, it will still cost time and money to defend successfully. Many businesses have suffered significant losses and, without the protection of management liability insurance, these losses could have wiped their annual profits or even resulted in the closure of their businesses.
A management liability policy can help protect a farmer and their business should they face a similar claim.
Why farmers need a management liability policy?
Farms can be a dangerous place to work and while farmers may take all the care they can to look after their staff, things can still go wrong.
Agriculture, forestry and fishing saw the highest rate of serious injury claims in 2017, according to Safe Work Australia, with 9.5 claims lodged per million hours worked. Safe Work Australia also found that agriculture was one of the deadliest industries in Australia with 52 fatalities at work over 2017 and a further 27 worker deaths preliminary reported in 2018.
“Farmers are subject to the greatest number of accidents and deaths as an occupation and the statutory liabilities from workplace health and safety are just as much a risk to them as they are to any business,” Hull continued.
The other aspects of the policy can also offer protection. For example, the average cost of a claim from a tax audit is over $20,000 and a management liability policy can help cover some or all of these costs.
In 2016-17, the Fair Work Commission found that there were 14,135 registered unfair dismissal cases, highlighting the importance of management liability cover from an employment practices perspective for all industries, including agriculture.
Do you own a small farm?
If you have a family run business or a small farm, the we offer a Management Liability Lite cover which can help cover your management liability risks. The policy offers a wide range of cover at lower costs thanks to its specific aim at the farming market.
“We have designed our Management Liability Lite policy to offer some form of protection to the smaller end market that would normally be paying thousands of dollars for a management liability policy,” Hull said.