Management Liability Insurance

What is management liability insurance?

Get indemnity™ management liability

Director's liability insurance is the main cover under a management liability policy. However, the product can also provide a number of additional covers that protect the company as well as the individuals.

Who needs management liability insurance?

Civil, regulatory and criminal allegations made against individuals and/or the company can be very costly and time consuming to defend, even if they're without merit. D&O insurance offers peace of mind you can defend legal actions made against you.

What does management liability insurance cover?

Each insurer's standard management liability insurance policy varies, however the broad covers are comparable under the below sections:

Management liability coverage has not always been purchased by small businesses but has become increasingly important in a litigious environment to protect against increasingly expensive legal costs.

Directors & officers insurance

The law generally seeks to protect individuals from personal liability where they have acted in good faith and complied with their responsibilities. However, any director, partner or employee acting in a managerial capacity on behalf of the company that fails to meet their legal obligations can be held personally liable.

Employment practice liability

Dealing with employees can be highly emotive and if internal procedures aren't followed, you can leave yourself open to successful employment tribunal claims. With greater employee awareness of their rights and how to exercise them, the cost and resource to defend employment disputes can cause significant disruption.

Corporate legal liability

Corporate legal liability is similar to D&O insurance but will defend claims made against the company as opposed to individuals. Breach of contract, copyright infringement and corporate manslaughter are typically covered. Corporate legal liability can only be purchased in conjunction with D&O Insurance.

Crime insurance

Companies with inadequate controls are often the target of sophisticated criminal networks and disgruntled employees. Crime insurance can offer valuable protection against damaging criminal behaviour. Employee theft is the standard cover offered under crime insurance. However, some insurers have expanded this section to include cover for social engineering fraud.

Additional management liability covers:

Additional management liability insurance covers can include: