Guide to Management Liability Insurance

What is management liability insurance and how can it protect you and your business

Get indemnity™ management cover

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Ensure your business and senior individuals are protected with management liability insurance
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Cover starts from £381 annually for £1 million D&O and £1 million entity cover
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Compare directors and officers insurance under a package policy designed for private companies
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Protect individual directors and officers acting in a managerial capacity on behalf of the business

An expert guide to management liability insurance for you individuals and businesses

Below we provide an expert guide to management liability insurance and explain why you should consider purchasing to protect against your personal liabilities.

As a Willis Towers Watson Network broker we work with a wide range of insurers to provide directors and officers cover and corporate legal liability to businesses under a product called management liability insurance.


What do you need to know about management liability insurance

When managing a business, you are individually exposed to legal actions for the actions you take on behalf of the company. Management liability insurance, otherwise know as directors and officers insurance can provide protection for your personal assets. 

Below we explain what management liability covers, and how it can offer individuals financial protection from civil litigation and regulatory investigations, while acting in a managerial capacity.


    What is management liability insurance?

    Management liability insurance is a package policy which combines both directors and officers insurance and corporate legal liability. Additional cover for employment practices liability, crime and cyber insurance can also be included.
     
    Operating a business in the modern world is increasingly complex and you can be personally liable for the actions you take on behalf of the company. Management liability offers peace of mind that you are able to defend yourself against civil, regulatory, or criminal allegations.
     
    Designed for small and medium sized private companies, the business insurance offers financial protection to the senior management and decision makers.
     
     
    What is management liability insurance?


    Why should you consider directors and officers insurance under a MLP?

    Individuals that accept roles as directors, officers and senior managers can be held personally libel. Therefore, management liability insurance is required to protect the personal assets of individuals that take leadership roles.

    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.

    Management liability insurance claims can arise from a wide range of sources. Having timely access to legal counsel who can advise on the best course of action, can resolve any issues quickly.


    What is directors and officers, corporate legal liability, employment practicies and crime insurance?

    In an increasingly litigious world, management liability coverage has become an increasingly important insurance policy to safeguard the personal assets of the management team and non-executive directors. Below we provide a guide to the different covers offered and explain what protection they can provide.

     

    What is directors & officers liability insurance?

    Directors and officers (D&O) insurance is the main cover offered under management liability insurance and provides individuals financial protection from civil litigation and regulatory investigations, while acting in a managerial capacity.

    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.


    What is corporate legal liability insurance?

    Corporate legal liability (CLL) insurance offers the company financial protection from civil litigation and regulatory investigations. The insurance will protect against legal costs in defending allegations and damages.

    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. CLL can only be purchased in conjunction with D&O Insurance.


    What is employment practice liability insurance?

    Employment practice liability (EPL) insurance offers financial protection from claims arising from a range of employment disputes (i.e. wrongful dismissal, harassment and discrimination).

    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.


    What is crime (fidelity) insurance?

    Crime (fidelity) insurance offers the company financial protection for the theft of property, money or securities from employee dishonesty or fraud.

    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 insurance cover for social engineering fraud.

    Why should consider directors and officers liability insurance?


    What additional management liability insurance covers are available?

    Cyber coverage can protect your business against first and third-party losses arising from security and privacy breaches.

    Kidnap and ransom can protect your business against the associated costs with incidents of kidnapping and extortion, potentially offering a crisis management service.

    Pension trustee liability can protect individuals while acting as trustees, the sponsoring employer and the pension scheme, against civil, criminal and regulatory proceedings.