Management & Statutory Liability

Risks Ahead warning sign
ARE YOU AND YOUR BUSINESS EXPOSED?

Did you know :
30% of companies employing between 1 and 500 employees experienced a fraud against their company in 2012.
Claim notifications for breaches of Work Health & Safety Legislation, increased by 71% in 2012.
In NSW alone, the NSW Fair Trading prosecuted 213 individuals and companies for breaches of which 184 were successful.
It is not only large public Companies who are exposed to personal liability for breaches of the duties they owe under many and varied pieces of legislation. Directors and officers of private companies are also at risk.

Potential exposures faced by your Company

The assets of your company may be exposed to:
• The cost of defending a claim and any damages and costs awarded as a result of a wrongful act
• Theft or fraud by employees
• The cost of investigating theft or fraud by employees
• Pecuniary penalties imposed on the company

Types of claims you or your company could face:
• Breaches of directors or officers duties
• Breach of fiduciary duty
• Defamation
• Breaches of Trade Practices Act and other statutes
• Occupational health and safety regulations
• Infringement of intellectual property rights
• Breach of confidentiality
• Allegations of illegal or improper conduct

A simple act, error or omission can be enough to result in a claim against your company.

Can you afford not to talk to AIA about this exposure to your assets?
Even small companies can have big claims. See Claim Examples (courtesy of supporting Insurers)

OH&S
Two employees injured within a few months. Workcover investigated resulting in fines of $98,000 to Company and $26,000 to the director plus costs of $26,000

Sexual Harassment
The employee sought an apology from the employers involved and compensation from the company for loss of earnings, emotional distress, depression medical and legal costs.
Settled out of court for $28,000

Unfair Dismissal
Employee suspected of stealing was dismissed .
Fair Work Australia found the company failed to follow correct dismissal procedures as set out by the Small Business Fair Dismissal Code.

Where are the claims coming from?
OH&S – 70% of Statutory Liability claims come from this area.

Industry Specific:
Mining & Transport Act
Therapeutic Goods Act
ASIC Act
Corporations Act
….over 350 sections apply.

TO PROTECT YOUR COMPANY AND ASSETS
Contact AIA now