17 May 2018
Insurance Scenario - Management Liability Policy
Penny receives an invoice for payment of over $5,000 for new equipment. Why does Penny need to have this invoice approved by management/board prior to payment?
Answer: A - It is important that no one employee can control a financial transition from commencement to completion. This si to protect the club from potential acts of fraud and is a good mitigation process.
The Management Liability Policy may not cover if a dual approval process is not documented and in place at the club.