Management Liability Insurance

An expert guide about management liability insurance

It's important to understand that when acting as a director of a business, you can be held personally liable for the decisions you make. Below we explain how a management liability policy can offer coverage for legal costs, damages, fines and penalties.

 Why Management Liability from a Willis Towers Watson Network Broker

Executive coverage and management liability insurance explained

As a specialist management liability insurance broker, we work with the leading insurers to provide cost-effective coverage designed to meet your company and director's needs. Policies will typically include directors and officers, and corporate legal liability, with options to include employment practices liability, and other additional covers.

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 Allianz Insurance Brand
 AXA Insurance Brand
 Beazley Syndicate Brand
 Chubb Insurance Brand
 CFC Insurance Brand
 Travelers Insurance Brand
 Zurich Insurance Brand

What is management liability insurance?

Management liability insurance is a package policy which combines directors and officers insurance and corporate legal liability. Additional coverage for employment practices liability, employee theft, and kidnap and ransom can also be included.

Operating a business is increasingly complex and you can be personally liable for the actions you take on behalf of the company. The coverage offers peace of mind you can defend yourself against civil, regulatory, or criminal allegations.

The policies are designed for small and medium sized private companies and offers financial protection to the senior management and decision makers from a range of disputes, litigation, and regulatory investigations.

What management liability insurance covers?

A management liability policy is arranged to help businesses of all sizes, big and small, to protect against potentially large liability claims. 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. Executive liability insurance offers peace of mind you can defend legal actions made against you.

 Breach of duty

Breach of duty

Directors can be held personally liable for failure to do something that you are legally responsible, otherwise known as a breach of duty.

 Neglect

Neglect

All directors can be held accountable for actions of another director due to a lack of oversight, even though they had no knowledge.

 Breach of trust

Breach of trust

A personal liability for directors can occur for breaching a third parties’ trust, when you have failed to act responsibly on behalf of the company.

Looking for management liability insurance? Talk to one of our experts and arrange your cover today

Coverage starts from £381 annually for £1 million D&O and £1 million CLL

How management liability insurance can offer financial protection?

Below we explain what management liability insurance covers, and how it can help offer individuals and the business financial protection from civil litigation and regulatory investigations. The coverage can be tailored to meet your business needs.

Employee theft

Otherwise known as fidelity insurance, employee theft cover helps by offering 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. The coverage can offer valuable protection against damaging criminal behaviour.

Kidnap and ransom

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

Executive liability insurance for your management team

Directors and officers insurance is the main cover provided under a management liability insurance policy. The terms are interchangeable, and many insurers commonly identify their products under both terms.

Legal defence costs and damages

The policy will cover defence costs, legal fees, expenses, and damages, if a customer, competitor, supplier, contractor, administrator, creditor, shareholder, or employee, demands financial compensation from you personally.

Investigation costs and prosecutions

The policy will cover the cost of regulatory investigations and prosecutions into the conduct of an insured person or the company by a governmental, regulatory, law enforcement, professional or statutory body with powers to investigate.

Management liability insurance cost

Management liability insurance starts from £381 per year, or £31.75 per month for £1 million D&O and CLL. However, the cost of your cover will be dependent upon a number of different factors described below.

Turnover, total assets, net worth, profitability, industry sector, US exposure, and claims history are all rating factors that insurers take into considering when calculating your management liability insurance cost.

In a litigious and connected world where third parties can suffer a financial loss, the coverage is an increasingly important to safeguard the personal assets of the management team and non-executive directors.

 What is management liability insurance?

What does management liability insurance not cover?

There are numerous business insurance covers available that can offer financial protection is a range of different circumstances. Ensure your company is adequately covered from insurable business risks with a selection of comprehensive policies.

Ensure you are personally protected when acting on behalf of the business. Get a management liability insurance quote today.

Talk to one of our expert insurance brokers about your business needs

Frequently asked questions

Is management liability insurance necessary?

There is no legal requirement to arrange the coverage. However, a policy can offer peace of mind to a company’s directors, officers, senior managers, whose professional leadership roles expose them to scrutiny from shareholders, regulators, competitors, customers, employees and other parties.

Why management liability insurance is important?

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. Directors and officers insurance offers peace of mind you can defend legal actions made against you.

As a director how can I be held personally liable?

There are a number of statutes that make directors personally liable for their actions on behalf of companies. The Companies Act 2006 details a number of duties that a director must comply with. If these laws did not exist then directors could pursue profits recklessly without any consequence after putting the business into administration.

What are management liability insurance definitions?

Each insurers' policy will have individual definitions, exclusions, and coverage conditions. Please ask one of our experts to explain how these will be applied and whether the coverage is suitable to meet your business needs.

What is executive liability insurance?

Executive liability insurance is another name for management liability insurance. There terms are interchangeable dependant upon which provider we arrange your cover with.

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