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Management liability insurance

Protect your business – and your team – against management and operational risks with management liability cover.

                              0800 376 304

What is management liability insurance?

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A packaged policy

This package is designed for small-to-medium enterprises (SMEs) – with multiple covers to help protect your business entity and managers against various claims.

Directors and officers (D&O)

This policy covers the cost incurred in defending your directors and managers against allegations of wrongful acts. It can also help protect their personal wealth and assets.

Employment practices

This policy helps protect your business from allegations of wrongful employment practices – like claims of wrongful dismissal, discrimination, or harassment by present, past or prospective employees.


This policy is designed to help protect your business against loss of property or revenue due to dishonest activities by employees or third parties – such as fraud and theft.

Statutory liability

This policy helps protect your business – and the people who run it – against fines and financial penalties for unintentionally breaching laws or industry rules and regulations.

Typical exclusions

Policy inclusions and coverage limits will vary between different insurers and policies. Here are some examples of typical exclusions.

Fraud or dishonesty

This policy does not cover losses that are directly or indirectly caused by wilful breach of duty or fraudulent and dishonest acts committed by insured directors and officers.

Pending claims/litigation

This policy does not provide coverage for any costs arising from claims and proceedings that existed or were pending since before the inception date of this policy.

Asbestos liabilities

The management liability policy does not cover any claim or loss arising directly or indirectly from, in connection with, or in respect of asbestos and any other asbestos-related liabilities.

Fire or premises damage

This policy does not include coverage for claims and losses arising directly or indirectly from – or in connection with – any fire damage and other damage or destruction to any premises or buildings.


Any claims against directors or officers that arise out of alleged or actual release of pollutants or are attributable to pollution. Some defence costs can be covered.

War and terrorism

This policy does not cover claims for losses due to war, acts of terrorism, civil war, riots, public commotion and violence for political, religious or other purposes.

Key product highlights

Versatile across industries

Management liability insurance is designed to help protect SMEs across most industries – including construction and hospitality.

Designed for SMEs

Management liability insurance is designed for small-to-medium enterprises (SMEs).

Covers multiple areas

This comprehensive package offers a range of covers, making it an essential component of your business's risk management strategy.

Protects your business

Management liability cover helps protect your business and managers against unintended mismanagement or mistakes – and other operational risks.

Tailored to your needs

Whilst the policies within a management liability package are generally fixed, liability limits can be tailored to suit your business needs.  

Easy and cost-effective

With management liability, you may not need to get other stand-alone policies individually – potentially making it simple, convenient, and cost-effective.

Why use a broker?

Choosing business insurance means navigating through products, coverages and policy terminology – with a sales pitch as your only guide. At Marsh, our brokers will spot your unique set of risks, match you to the right choice, and advocate for you on price.

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Why Marsh?

Why should you choose Marsh to arrange your insurance solutions?

In business, we've got your back 

From mum and dad’s dairy, to national pizza chains, Marsh has a 60+ year history of supporting New Zealand’s business community. Our award-winning brokers are fluent in the latest global and Kiwi market insights and risks, but cut through the jargon to speak your language.   

Local expertise

Our New Zealand-wide network of brokers have spent years at the forefront, supporting business owners manage their unique risks in a fast-changing market. Our brokers keep ahead of the latest market insights, both local and global, and break down complex terminology.

Claims support

Handling an insurance claim can quickly become overwhelming, not least when your time is stretched to the limit keeping your business going in the backdrop. We help take the load off and manage, negotiate and settle claims with insurers on your behalf.

Your trusted broker

Our team of professional insurance brokers and risk advisors are dedicated to helping SMEs. We identify and arrange suitable management liability insurance cover – and provide advice and recommendations to help strengthen your risk management.

Experts on your side

We are always on the lookout for the best value for your business. Our insurance brokers across the country utilise their local industry experience and insights to negotiate competitive premiums and coverage, so we can help you get the best deal possible.

Personalised service

Every business is unique. That’s why, as part of our service offering, we pair you with an insurance broker whose experience complements the risk profile of your business. So you can work with someone who knows what you need – and provides tailored advice and options.

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Business insurance

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Frequently asked questions

No. Management liability covers the management of a business. Whereas public liability helps protect a business from the costs incurred from third-party injury and property damage claims.

Even if you’re not at fault, the legal costs to defend yourself or your business can be significant – and even put your personal assets at stake if you’re not insured.

Management liability covers the management of a business. Professional indemnity, on the other hand, covers the services and advice offered by a business and its employees.

Management liability insurance provides cover for private companies, while association liability is designed for not-for-profit and charitable associations.

An association liability policy may also include professional indemnity, but a management liability policy does not.

Management liability comes with a ‘condensed’ version of the directors and officers liability (D&O) policy that is designed for SMEs. A management liability policy also includes other covers, including corporate legal liability and employment practices liability, making it simpler and more cost-effective to protect your business from various risks.

The stand-alone D&O is designed for larger organisations and has much broader cover. But it does not come with any other insurance covers – only D&O.

The cost of your management liability insurance will depend on several factors, including your business size, revenue and risk exposures.

When requesting a quote, be sure to fill in the form values as accurately as possible. This helps us arrange the right premium and cover for your business. Along with the completed proposal form, a copy of your latest audited/reviewed financial report may be required.

For a clearer picture, you can also request a call back to speak to a Marsh advisor.

Inclusions and coverage limits may vary between different insurers and policies.

Typical exclusions may include:

  • Fraud or dishonesty 

  • Pending or prior claims and litigation 

  • Intentional and deliberate acts

  • Bodily injury and property damage

  • Asbestos-related liabilities.

To find out more about the exclusions, deductibles, excesses and limits that may apply to your specific policy, please speak to your Marsh advisor.

Even when your business has ceased trading or is being acquired, it continues to be liable for up to six years (in line with the statute of limitations).

A run-off period refers to a policy provision that protects the insured for a certain period of time, even after they’ve closed the business.

LCPA 23/150

Marsh Ltd (NZBN 9429040918792)(“Marsh”) arranges insurance and is not an insurer. This webpage contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire the product, refer to the specific policy wordings and/or product disclosure statements available from Marsh on request.