Management Liability: industry specific claims scenarios

Example one

Construction company 

Background

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.

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.

Example two

Education industry

Background

The claimant was the Vice Principal at a rural NSW 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 in the Fair Work Commission seeking compensation in the amount of $400,000.

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 positively responded to cover both the settlement and defence aspect of the claim.

Example three

Goods transportation company 

Background

The Insured was the registered operator of a Heavy Vehicle that was intercepted by authorised officers of the National Heavy Vehicle Regulator. The officers observed that the load dimensions breached those prescribed by section 101 of the Heavy Vehicle National Law.

Response

A panel firm was appointed and was able to significantly reduce both charges levelled against the Insured.

Lesson

There does not necessarily need to be a significant incident such as a crash or fatality which can trigger the policy in response to a HVNL claim.

*These are hypothetical claim scenarios only and any outcomes depend on claim specifics, policy terms and conditions and individual circumstances.

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. And 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.

In the event of a claim or loss, contact the DUAL Claims team:

P: +61 2 9248 6300

E: [email protected]