The Rise of Upward Bullying And The Implications For Management Liability Insurance

What is Upward Bullying

When most people think about bullying in the workplace, they imagine a senior leader misusing authority to intimidate or belittle employees. Yet a quieter, often overlooked form of aggression is becoming increasingly common: upward bullying. This occurs when employees or teams target a manager or supervisor with behaviours intended to undermine, intimidate, or destabilise their authority. While it may seem counterintuitive—after all, managers hold formal power—upward bullying can be just as damaging as traditional top‑down harassment.

Upward bullying typically emerges in environments where organisational change, unclear expectations, or cultural tensions create uncertainty. A manager who is new, younger than their team, or brought in to implement unpopular reforms may be particularly vulnerable. In these situations, some employees may band together to resist direction, challenge decisions aggressively, or deliberately sabotage work. The goal is often to erode the manager’s confidence or force them out.

The behaviours associated with upward bullying can be subtle or overt. They might include persistent non‑compliance, withholding information, spreading rumours, questioning decisions in bad faith, or deliberately excluding the manager from informal networks. In more extreme cases, employees may lodge vexatious complaints or escalate minor issues to higher leadership to discredit the manager. Because these actions often masquerade as “feedback” or “concerns,” organisations can struggle to recognise the pattern until considerable damage has been done.

The impact on managers can be profound. Many experience heightened stress, anxiety, or self‑doubt. Their performance may decline as they spend increasing amounts of time managing conflict rather than leading their teams. In some cases, managers leave their roles entirely, creating instability and turnover that ripple across the organisation. The broader workplace culture also suffers when upward bullying goes unchecked, it signals that manipulation and resistance are acceptable strategies for avoiding accountability.

Relevance for Broker/Client Conversations

Broker conversations with clients might involve:

• Drawing the attention of clients to this issue and the environments that could foster upward bullying as a workplace concern;
• Identifying where this could potentially represent an issue in the client’s business given current activities e.g. where substantial change management initiatives are being pursued that could present issues for managers and their staff;
• Encouraging a review of clients’ anti-bullying policies to recognise and deal with upward bullying in the wider context of workplace harassment.

Upward Bullying and Management Liability Insurance

The BIA Management Liability (ML) policy is designed to protect the company and its executives for liability to pay compensation for wrongful acts relating to the management of the company.

The BIA ML policy includes Employment Practices Liability (EPL) coverage which provides cover for actions taken by employees for a range of issues relating to employment including alleged discrimination, unfair dismissal, sexual harassment and bullying.

 When a manager alleges upward bullying, the EPL section of the ML policy may respond if the behaviour constitutes unlawful harassment or creates a psychologically unsafe workplace. This may include coverage for legal defence costs, settlements, or damages arising from an employment‑related claim.

Important Notice

Berkley Insurance Company (limited company incorporated in Delaware, USA) ABN 53 126 559 706 t/as Berkley Insurance Australia is an APRA authorised general insurer. Information provided is general only, intended for brokers and has been prepared without taking into account any person’s particular objectives, financial situation or needs. Insurance cover is subject to terms, conditions, limits, and exclusions. Underwriting criteria applies. When making a decision to buy or continue to hold a product, you should review the relevant policy documents.