MANAGEMENT LIABILITY
Management Liability For Your Business - The Smart Move for Gym and Dojo Owners
If your gym, dojo, or martial arts organisation has multiple staff or branches, you need Management Liability as part of your business protection plan.
It’s not about expecting the worst — it’s about being prepared for it. Even good owners can get caught up in situations beyond their control.
When Public Liability keeps you safe from what happens to others, Management Liability keeps you safe from what happens within your team.
Management Liability Insurance protects your martial arts club / fitness studio against the risks and exposures of running a company or an association Without the proper protection you could risk losing your personal assets and that of directors / committee members. Management Liability Insurance is often confused with professional indemnity insurance. Professional Indemnity Insurance covers the ‘activities’ of a business/club whereas Management Liability Insurance covers the ‘running’ of a business/club.
A Management Liability policy is designed to cover a range of potential exposures that you, and your club / business, are exposed to on a daily basis.
STANDARD COVER LIMITS - $1mil - $5mil
For more information contact 03 8201 9908
Management Liability Insurance policies cover the following:
Directors & Officers Liability Coverage
Employment Practices Liability Coverage
Employee Dishonesty Coverage
Statutory Liability Coverage
Superannuation Trust Liability
Corporate Legal Liability Coverage
Legal Representation Expenses
Specific Public Relation Expenses
Breach of Contract Defence Costs
Identity Fraud Costs Court Attendance Costs
Tax Audit Expenses
You can include management liability to your existing
business insurance covers (Public, Products, Civil etc).
When Your Business Grows, So Do the Risks
Maybe you’ve opened a few new branches, or partnered with other instructors to run programs under your name. You might even have franchisees or casual coaches working under your brand. The more people involved, the harder it is to control every decision. One poor choice, by anyone representing your business, can land you in legal or financial trouble.
Common Situations Where Management Liability Saves the Day
1. Staff Complaint Gone Legal
Your assistant manager fires a coach after repeated lateness. The coach lodges a complaint claiming unfair dismissal and discrimination.
With only Public Liability: No cover. You pay legal and settlement costs yourself.
With Management Liability: Your Employment Practices cover pays for lawyers, settlements, and even Fair Work defence.
2. Franchisee or Manager Misbehaviour
A branch manager misuses gym funds or mishandles a complaint. The victim blames your brand and sues the head office for negligence in management.
Without ML: You’re personally exposed as the owner or director.
With ML: Directors & Officers cover steps in to defend you and the company.
3. Regulator Investigation or Fine
Your business receives a fine for breaching WHS reporting rules after a minor injury. Even though no one sues you, the regulator imposes a penalty.
Without ML: You pay the fine and legal fees.
With ML: Statutory Liability helps with legal defence and some penalties (where allowed by law).
Protecting the People Who Run the Business
Unlike Public Liability (which protects against outside claims), Management Liability protects the people who make decisions — the owner, directors, and senior staff.
It gives peace of mind that if something goes wrong with:
Staff management
Workplace safety obligations
Privacy breaches or misuse of data
Poor decision-making by a representative
—you’re not left paying the price personally.
What is Management Liability Insurance
It’s insurance that protects business owners, directors, and managers against legal, financial, and regulatory claims resulting from how a business is managed. It covers internal risks that Public Liability doesn’t.
How is it different from Public Liability Insurance
Public Liability protects you if a client or visitor is injured or their property is damaged. Management Liability protects you against internal risks like staff claims, unfair dismissal, fraud, or mismanagement allegations.
Who is covered under Management Liability
Typically, the company, its directors, officers, and senior managers — and sometimes the business itself. It protects both the organisation and the decision-makers personally.
Why do gyms and martial arts clubs need it
Because you’re managing people, money, and compliance obligations. One mistake — or poor choice by an employee or manager — can lead to costly claims, even if you did nothing wrong.
What kind of incidents does it cover
Common examples include unfair dismissal or bullying claims, employee theft, accidental breaches of WHS or Fair Work laws, tax audits, or claims of poor management decisions.
Is it only for large organisations
No. Any gym, martial arts club, or fitness business with staff, volunteers, or multiple sites should consider it. Smaller clubs are often more financially vulnerable to a single claim.
Does it cover franchisees or affiliated clubs
Yes, if structured correctly. It can cover head offices, franchisors, or associations where representatives operate under your brand and their actions affect your reputation.
How much does Management Liability insurance cost
It depends on your business size, structure, and risk profile — but it’s often far less than the cost of defending one legal claim. It’s an affordable way to protect your hard-earned reputation and assets.
What happens if an employee commits fraud or theft
Crime cover (part of Management Liability) can reimburse the business for financial losses caused by dishonest acts of employees or managers.
Are fines and penalties covered
Some statutory fines or legal costs related to regulatory investigations may be covered — depending on the type of penalty and your policy terms.
