Question 1

Do WH&S regulators charge a fee for investigating WH&S contraventions?

Accepted Answer

WH&S regulators do not generally charge a fee for investigating alleged WH&S contraventions. However, the entity the subject of an investigation will often incur expenses involved with providing information to the WH&S regulator. This can include engaging experts to assist with responding to queries from WH&S regulators

Question 2

Can contractors also claim under the Employment Practices Liability Extension?

Accepted Answer

Our policy only provides cover for Company Employee's. It does not cover independent contractors, consultants or labour hire workers. Contractors are generally engaged under a contract for services, whereas employees are employed under an employment contract. The EPL cover responds to claims for breaches of employment contracts, not contracts for services.

Question 3

Can you provide examples of fines against NSW commercial property owners (non strata)?

Accepted Answer

There could be fines for many areas but probably the most relevant is a breach of WH&S laws. That is a non-safe workplace or non-safe property.

Question 4

Are WH&S fines / penalties in NSW, VIC, WA covered by Statutory Liability under Management Liability?

Accepted Answer

No. However, costs for defending allegations of WH&S contraventions are still covered. Defence costs may be more than the WH&S fine.

Question 5

How broad is Berkley’s new Listed Human Disease Exclusion really meant to be?

Accepted Answer

We originally applied a Communicable Disease exclusion but we were concerned that this exclusion was too broad. That is why we now apply Listed Human Disease exclusion as it specifically refers back to diseases listed by the World Health Organisation, so not as broad an exclusion as the previous Communicable Disease exclusion.

Question 6

Is the exclusion in respect of consumer protection law common with insurers?

Accepted Answer

Yes, it is. The fines under consumer protection laws are extremely high and with premiums under Management Liability low, consumer protection fines are too high to be covered under Management Liability insurance.

Question 7

Construction and Project Management

Accepted Answer

The insured was managing a building site where two employees were undertaking demolition from a height in an excavator bucket. The excavator bucket detached from the excavator and fell onto the concrete slab below, causing the workers to also fall onto the concrete slab. The workers sustained serious injuries as a result. Safework commenced proceedings against the insured alleging that they failed to provide a safe work environment by failing to ensure the employees or contractors were standing on a safe structure when conducting the work. The matter was settled for approx. $200,000 including expenses.

Question 8

Food Wholesaler

Accepted Answer

Insured is a fresh food supplier who purchases produce directly from growers and on-sells to customers. An employee stole and sold the produce by way of concealed transaction with retail distributor. The employee was hiding the transactions by deliberately not entering relevant information in the insured’s sales management system. The matter was settled for $250,000 including expenses.

Question 9

Security Installer

Accepted Answer

The insured is a radio frequency technology company. The claimant, an employee of the insured, was employed as a Technician for a number of years. This employee alleged underpayment of wages as the role was incorrectly classified and therefore the employee had been underpaid for the duration of employment. The employee alleged that the insured took adverse action against the employee (resulting in dismissal) in response to exercising their workplace right to make a complaint or enquiry referable to their employment. The adverse action matter only was settled for over $100,000 including expenses.

Question 10

Civil Construction

Accepted Answer

ATO audit conducted of the insured’s tax affairs for the 2020 and 2021 income years and for the 2019 to 2021 tax periods. Total paid was over $30,000.

Question 11

Transport Company

Accepted Answer

A delivery driver for a Transport company collaborated with a warehouse manager of the claimant to misappropriate $75,000 worth of tyres from the claimant’s warehouse over time. The employee of the insured collaborated with the employee of claimant to enact theft of numerous tyres over the course of many years. The matter was settled for over $25,000 including expenses as recovery was achieved.

Management Liability Insurance

Capacity

$20m

Coverage

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Claims Examples

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