Management liability
What happens to a management / directors & officers policy when a business is sold?
When a business is sold, the ML/D&O policy usually enters a "run-off" period. Here's what that means in simple terms:
- Coverage usually continues until the policy expires and usually applies to wrongful acts that occurred before the sale.
- No coverage applies for any actions after the sale.
After the policy period ends, the insured typically has the option to buy an extended run-off period (also known as "discovery period"). This provides the benefit of additional time to report or notify of claims relating to pre-sale conduct, within the terms of the policy.
Does DUAL's Tax Audit extension cover directors' personal tax audits?
When the DUAL Tax Audit extension is purchased, it may include cover for personal income tax audits of insured directors and officers. This applies under both DUAL's standard ML policy and the Evolution policy.
Professional indemnity
Does DUAL’s Professional Indemnity (PI) policy cover bodily injury or property damage?
DUAL’s PI policy may respond to bodily injury or property damage only when directly caused by professional services.
If the injury or damage stems from general business activities or premises risks, it may fall under DUAL’s General Liability policy.
- An individual suffers a slip and fall incident inside the agent's office → GL policy
- Tenant suffers injury due to the agent's negligence or failure to maintain a property → PI policy
Both involve bodily injury - the difference is what caused it.
Is faulty workmanship that causes financial loss covered?
DUAL's PI policies are designed to cover professional services and advice, not physical construction or installation work. Design & Construct (D&C) policies may apply in certain circumstances, although they generally exclude faulty workmanship except where a claim arises from professional services.
Cyber
Does employee data count as Personal Identifiable Information? (PII)?
Employee data in the following categories is considered to be PII:
- Names
- Addresses
- Tax file numbers
- Bank details
- Health information.
A cyber incident involving employee data (e.g., a payroll hack or phishing attack) is handled the same way as a customer data breach under a Cyber policy.
What are the most common cybersecurity mistakes businesses make?
1. Insufficient employee training
- Phishing and social engineering continue to be common cyber attack methods.
- Without ongoing training, policyholders may be more susceptible to cyber threats.
2. No Multi-Factor Authentication (MFA)
- MFA significantly reduces unauthorised access risks, yet MFA is not always implemented consistently.
3. Inadequate incident response plan
- Without a defined and tested response plan, organisations may experience increased disruption and costs during an incident.
4. Underestimation of cyber risks and exposures
- Cyberattacks are opportunistic, not personal. Incidents and cyber breaches occur across all business sizes and sectors.
- Over 60% of small to mid-sized businesses experience a cyberattack each year, and many never recover financially
For organisations seeking practical guidance, DUAL provides a resource titled 10 tips to help prevent a cyber attack, based on the most common issues we see.
Claims
What if an insured didn't report a circumstance because they believed they weren't at fault?
If an issue has the potential to turn into a claim, it should be notified, even if the insured believes they are not at fault.
Failure to report can lead to complications like:
- Prior Known Circumstances exclusion being applied.
- Non-disclosure issues, which can affect claims later.
- The insurer could be prejudiced due to late notification.
If a claim arises and:
- DUAL was on risk at the time, cover may still be considered, subject to the terms and conditions.
- DUAL wasn’t on risk, then cover may not apply.
The key takeaway: Always notify early to ensure the insured's interests remain protected.
Contractual liability
What is proportionate liability?
Proportionate liability means that each party is only responsible for their share of the loss, not the entire loss.
This prevents one party from being held fully liable for mistakes made by others.
Example:
An engineer relies on incorrect soil testing results from another consultant. When the principle of proportional liability is applied:
- The engineer is responsible for their part of the error.
- The soil tester bears responsibility for their contribution.
This can significantly reduce an insured’s exposure. However, in some states, parties may contract out of proportionate liability legislation, increasing potential liability for insureds.
Are liquidated damages covered if the policy doesn't specifically exclude them?
Liquidated damages are usually linked to contractual commitments, not legal liability. They often represent:
- An agreed penalty or pre-set amount.
- Liability assumed over and above normal legal responsibility.
Because of this, they are typically excluded under the contractual liability exclusion, even if not explicitly named.
The answers and examples provided above are for illustrative purposes only and do not guarantee coverage and cannot be relied on. Actual claims are assessed individually and subject to the terms and conditions of the relevant policy. Any product information discussed in this blog is subject to the terms and conditions of the policy, eligibility criteria, any additional premium for optional cover, limitations and exclusions.
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The examples provided are for illustrative purposes only and do not guarantee coverage. Actual claims are assessed individually and subject to the terms and conditions of the relevant policy. Any product information discussed in this blog is subject to the terms and conditions of the policy, eligibility criteria, any additional premium for optional cover, limitations and exclusions.
Copyright © 2026 DUAL Australia Pty Ltd (ABN 16 107 553 257, AFSL 280193). All rights reserved.
The information contained in this blog is intended for licensed insurance brokers and other authorised intermediaries only. DUAL issues insurances on behalf of Certain Underwriters at Lloyd’s of London and/or Allianz Australia Insurance Limited, acting as their agent. The information is of a general nature and does not take into account the objectives, financial situation or needs of any person. It is intended for the use of professional intermediaries who are expected to consider whether it is appropriate for their clients. Before recommending or offering any insurance product, intermediaries should read the policy wording, relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD) and assess whether the product is suitable for their client’s circumstances. These are available on request or via our website at DUAL Australia.