What is management liability insurance?
Management liability insurance is a package policy for small and medium sized private companies and LLPs, that offers financial protection to the senior management, and the company against a range of allegations.
The main cover under a management liability policy is director's and officer's insurance, with optional protection for employment practices liability (EPL), corporate legal liability (CLL), and crime / fidelity insurance.
Get indemnity™ management liability
When making decisions on behalf of an incorporated entity, the management can be held personally libel for their actions on behalf of the company.
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.
At get indemnity™ management liability insurance is available to start-ups and companies with a turnover up to £100m. If you've been trading +2 years, made a profit before tax and has a positive net worth, the process to obtain quotes is simple.
Who needs management liability insurance?
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 does management liability insurance cover?
Each insurer's standard management liability insurance policy varies, however the broad covers are comparable under the below sections:
Employment Practice Liability
Corporate Legal Liability
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.
Management liability insurance definitions can vary, therefore it's worth considering the terms to consider what cover best meets your needs.
Directors & officers insurance
Directors and officers (D&O)
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.
Employment practice liability
Employment practice liability (EPL)
offers financial protection under management liability insurance 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.
Corporate legal liability
Corporate legal liability (CLL)
offers the company financial protection under management liability insurance 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. Corporate legal liability can only be purchased in conjunction with D&O Insurance.
Crime (fidelity) insurance
offers the company financial protection under management liability insurance 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 cover for social engineering fraud.
Additional management liability covers:
Additional management liability insurance covers can include:
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.
How to compare management liability insurance quotes?
To obtain your management liability insurance quotes, please complete our online application
and we can typically offer quotes in less than 48 hours. There are a number of insurers that can provide management liability coverage at competitive premiums.
If your business has a low to medium hazard exposure (typically viewed as being financially stable and not operating within a high-risk industry class) competition remains in the market.
Ensure you continue to purchase the most competitive protection for your management by speaking with one of our expert insurance brokers