Whether facing allegations of unfair dismissal, navigating complex fraud exposures or managing regulatory or tax audits, Management Liability insurance plays a critical role in protecting your client's business and leadership teams.
To gain a better understanding of how DUAL’s Management Liability cover operates in the real world, we’ve put together a series of claim scenarios. These case studies are designed to support your conversations with clients and help you place cover with confidence.
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Example one Construction companyBackground The insured’s compliance manager engaged in prolonged misuse of a corporate credit card, making unauthorised personal purchases - including groceries, household items, and electronics - totalling approximately $90,000 before the activity was discovered.
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Response A fraud investigator was appointed under the Crime Investigation Fees automatic extension, with the policy responding to cover these specialist fees. As a result, the insured received reimbursement for their direct financial loss. Lesson This illustrates the advantage of the Crime Investigation Fees automatic extension, providing insured clients with coverage for professional investigator fees, ensuring they have the expert support needed to gather evidence and substantiate losses incurred as a result of crime.
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Example two Education industryBackground The claimant was the Vice Principal at a college who was employed by the insured continuously for 20 years. The claimant was dismissed on grounds of misconduct, however filed a unfair dismissal claim seeking compensation in the amount of $100,000. |
Response A panel firm was appointed and successfully obtained a reduced settlement based on the grounds the insured properly investigated the alleged misconduct and provided due process to the claimant before termination. Lesson Despite the insured following proper procedure, a claim materialised and the insurance policy responded to cover both the settlement and defence aspect of the claim.
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Example three Horticultural retailerBackground The Inland Revenue Department (IRD) issued a compulsory audit on the insured, which required additional accounting work beyond their usual annual accountancy services. |
Response The insured’s Management Liability policy covered the extra accountancy fees incurred specifically to respond to the IRD audit, up to approximately $25,000. Lesson Management Liability insurance can assist in managing unexpected costs associated with regulatory audits, providing support for additional professional services outside standard annual fees. |
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These are hypothetical claim scenarios only and any outcomes depend on claim specifics, policy terms and conditions and individual circumstances. |
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Our in-house claims team is dedicated to supporting financial lines claims with care and expertise.
Our team of qualified claims professionals brings extensive industry expertise, guiding you seamlessly from initial notification through to resolution.
We work closely with our capacity providers to manage claims with precision and efficiency. When needed, we partner with law firms and specialist consultants across employment practices liability, statutory liability, and crime, ensuring the strongest possible results for your clients.
Further resources
Management Liability product profile
Additional Management Liability claims examples
Copyright © 2025 DUAL New Zealand. (NZBN 9429031263993, FSP108406). All rights reserved.
The information contained in this blog is intended for licensed insurance brokers and other authorised intermediaries only. DUAL issues insurances on behalf of Certain Underwriters at Lloyd’s of London and/or HDI Global Specialty, acting as their agent. The information is of a general nature and does not take into account the objectives, financial situation or needs of any person. It is intended for the use of professional intermediaries who are expected to consider whether it is appropriate for their clients. Before recommending or offering any insurance product, intermediaries should read the policy wording and assess whether the product is suitable for their client’s circumstances. These are available on request or via our website at DUAL New Zealand.