Management Liability

Owning and managing a business or non-profit organization comes with many potential risks such as shareholder litigation, alleged employee discrimination, harassment or mismanagement of a company’s benefits program. Organizations can protect themselves by investing in management liability insurance to cover their teams and businesses against these types of claims.

Traditionally known as Directors & Officers Insurance, Management Liability Insurance protects Company Directors, Senior Managers and Officers of Charities, Boards and Committees and Associations if a negligence claim is brought against them in court or at an employment tribunal. Claims can be brought by a number of parties, including: business partner, regulator, supplier, employee, customer, investor, competitor, or even a shareholder.

Management Liability policies provide three areas of cover: Directors & Officers Liability, Corporate Legal Liability and Employment Practices Liability.

Directors and Officers Liability

This protects the personal assets of the Directors, Officers and Senior Management from the legal costs and awards in defending against civil, criminal and regulatory claims or investigations as a result of an alleged wrongful act. Wrongful acts include: breach of trust, breach of duty,  neglect/error/omission, libel and slander, misstatement, breach of warranty of authority, wrongful trading.

Corporate Legal Liability

Claims can be made against the directors and officers and also the business itself in tandem. This insures the legal entity (business) for the legal costs and awards in defending against civil, criminal and regulatory claims or investigations following alleged corporation negligence. The coverage includes: breach of trust or duty, neglect, errors or omissions, breach of contract, libel and slander, and pollution and provides defences costs and damages incurred relating to civil and regulatory claims or investigations.

Employment Practices Liability

This covers both you, the directors and the business against financial losses from claims made by employees for a wide range of employment practice violations, including unfair dismissal or discrimination on grounds of sex, race, disability, religion, belief or sexual orientation. The policy covers the cost of defence, awards, settlements and legal representation.

Our Commercial Insurance Brokers will be happy to take you through every stage of this complex insurance to ensure you understand fully the cover in place for your assets.