Management liability insurance is a cover that can be overlooked by business owners. It shouldn’t be.
It is one of the most important insurance covers that should be put in place to protect not just your business, but the directors and key management as well.
Management liability insurance protects management and directors personally and the company entity itself from the many exposures that go hand in hand when operating a business.
Directors and management make decisions every day on behalf of their company. With these responsibilities, issues can arise where management may be held personally liable for any actual or alleged wrongdoing.
Management liability insurance can cover the business against claims arising from mistakes or deliberate actions – including fraud – from the company or its directors, officers, or employees – both past and present.
Management liability insurance can cover the cost of investigating, defending, and settling claims by a third party, as well as paying compensation the business is liable for.
Despite best intentions, breaches of legislation and compliance can still happen, and stakeholder expectations can be mismanaged. These scenarios can bring liability exposure to company directors, officers, and managers.
Directors and officer’s liability will protect the past, present, and future directors, and officers of a business. It will also cover anyone else involved in the management of a company, including employees from acts such as:
These types of claims can be made against an individual, the company or both.
Employment Practices Liability insurance is a common insurance that provides protection for employment exposures.
This coverage is gaining traction in today’s market due to allegations made by employees, or third parties, that involve discrimination or harassment towards that person.
Even if the allegations are proven unfounded, they can tie up management time and cause considerable angst to the alleged party even if proven innocent.
Fidelity Insurance cover is also known as Crime Insurance cover and protects a business from dishonest acts by employees, contractors, shareholders and other third parties.
This insurance protects against loss of both money and tangible property caused by forgery, defalcation, embezzlement, or other fraudulent acts.
Statutory Liability can pay fines and penalties awarded against the business for allegations of wrongful breach of certain legislation.
This form of liability also provides legal costs to defend the matter as well as representation at an investigation or inquiry. It covers the wrongful acts of the company, not just of directors, officers, and employees.
Begin a discussion with the team at Bogacz Insurance Services to discuss your management liability insurance needs.