FEATURE / Management Liability

against employers,” says Kate Greaves, General Insurance Manager at Goldsworthy.

“It is so integral as an employer to try and stay on top of and understand the legislative changes and amendments, which can be very difficult when you’re already so busy running a business.”

Cyber Continues To Cause Headaches

While the post-COVID return to work is a relatively new issue from an insurance perspective, online crime is one that’s now part of the risk management furniture – however, it does continue to be a significant threat.

“Social engineering claims are becoming increasingly common, and it is important that brokers understand what cover is available in the market for this exposure,” says Kirsty Owens, State Manager SA and National e-Business Manager at Berkley Insurance Australia.

Webber agrees: “Social engineering continues to be a major problem, however, I would say that awareness has increased over the past couple of years.”

As always with cyber threats, strong risk management includes regular staff training and education to ensure cyber security stays front of mind – after all, the majority of cyber attacks rely on human error in order to gain access.

Owens says, “Brokers can help their clients implement risk management measures, such as robust security policies and procedures, to reduce the risk of compromise and increase the speed of recovery when a cyber event happens.”

INFLATIONARY PRESSURES – BUT ARE PRICE RISES SLOWING?

Of course, businesses are facing many challenges which potentially fall under management liability, with shareholder activism, corporate scandals, and regulatory scrutiny leading to a rise in expensive director and officer claims.

“They have put pressure on insurance carriers to assess risks, which ultimately increases pricing,” says Greaves.

Owens agrees: “Inflationary pressures result in increased claims costs for insurers, ultimately putting pressure on rates and retentions. We see this resulting both from economic inflation as well as social inflation, the trend of rising insurance costs due to increased litigation and higher awards.

“Insurers are seeking to offset these additional costs through technology and automation to streamline and expedite the underwriting process.”

Working from home has become an increasingly contentious subject for many businesses across the world. While some have embraced the trend – which was necessitated by the global pandemic – as an ongoing arrangement that benefits both the business and staff, others have been keen to get back to ‘business as usual’ as quickly as possible.