What is Management Liability Insurance?
Management liability is a commercial insurance product, which provides financial protection to senior management, as well as the business entity. It protects against alleged claims of negligence, breach of duty, health and safety concerns, defamation, trespass and even pollution, resulting from the actions of your business.
Claimants can include shareholders, employees, customers, suppliers, regulators, creditors and other third parties.
Made up of three elements Management Liability Insurance includes Directors’ and Officers’ Insurance, Corporate Legal Liability and Employment Practices Liability.
Directors’ and Officers’ Insurance
This insurance covers you as an individual. Directors’ and Officers’ Insurance provides cover for legal costs and expenses incurred in the course of defending a claim, including fines and penalties as well as any compensation payable to the client. However, it doesn’t cover any legal costs or expenses which arise from intentional breaches such as fraud.
Corporate Legal Liability Insurance
An important element of Management Liability cover, this insurance covers your business against legal action brought against the company as a result of the wrongdoing of an employee. This cover will protect you against alleged fraud as well as other potential allegations improper actions including breach of contract claims, passing off, trespassing, health and safety investigation costs and costs to defend corporate manslaughter proceedings.
Employment Practices Liability Insurance
This insurance protects against allegations made against you or your business by an employee. It helps with the costs involved in defending claims against you or your business including unfair dismissal, discrimination, sexual harassment and health and safety related claims. It will cover any legal costs incurred in defending a claim and also cover any compensation awarded to the claimant.
As an independent commercial insurance broker, we provide completely impartial advice so you can be confident in securing management liability cover, including Directors’ and Officers’ insurance that meets your needs.
You can see some examples of where Management Liability can protect your business in our scenarios here.
Talk to us today about your management liability cover – we can make sure that you have the right levels of cover in place to protect you and your business should an unexpected event occur.
Contact on 01480 272727 or complete our enquiry form.
Find out the answers to Frequently Asked Questions around Directors’ and Officers’ insurance and management liability cover below.
Frequently Asked Questions
Why do I need Management Liability Insurance?
Insurance is there to protect you should the unexpected happen. Being prepared brings peace of mind and freedom from worry, so you can concentrate on running your business. Management Liability Insurance is vitally important to anyone who holds a senior position within a company because you may be held personally responsible in a claim made against the company.
Your personal assets may be at risk if you are sued whilst acting in your capacity as a director or officer. Directors’ and Officers’ cover protects your personal assets in this event, securing your future and that of your family should an allegation be made against you.
Allegations of negligence or wrongdoings can come from anywhere including other directors or shareholders, employees or third parties and it can be an individual who is found liable.
You and your business may face significant legal costs, fines and possible compensation awards when defending an alleged claim.
Here are just a few examples of why you should invest in Management Liability insurance:
- Employment practices liability cover could assist if you face a claim against a health and safety breach. An employee might damage their back when lifting equipment or supplies and claim they didn’t receive the correct manual handling training. Compensation and legal fees would be covered, and any fines imposed as a result of actions taken by the HSE.
- If an employee mismanages your company pension scheme, Corporate legal Lability Insurance would cover you for any legal costs and fines incurred and also cover any compensation due to the people whose pensions were affected by the wrongdoing.
- As a company director or partner, you may suggest an investment opportunity to your shareholders which they decide to pursue. However, if the venture were to fail and it was found that it wasn’t properly researched by you, a case for a lack of due diligence may be brought against you resulting in hefty legal costs and compensation. With Directors’ and Officers’ Insurance in place, you would be fully protected against such claims.
We arrange Management Liability Insurance for accountants, dentists, doctors, healthcare professionals, care and nursing home service providers, scientific and biotechnology researchers, vets and manufacturers.
We provide an exceptional service to all our clients, by understanding what potential risks they face and creating a bespoke insurance programme to meet those needs.
Ask us about Management Liability Insurance today – call us on 01480 272727 or email at enquiries@barnesinsurancebroker.co.uk
Who should have Management Liability Insurance?
Anyone who holds a senior position within a business should seriously consider Management Liability Insurance. In a position of leadership and authority the buck usually stops with you. Having Management Liability Insurance in place will safeguard your future and the future of your business. Indirectly it helps employees, because without your business they will need to find alternative employment.
It will bring you peace of mind, knowing that your retirement plans can still be realised should an alleged claim be made against you in your role as a director or officer within the company.
What are the benefits of Management Liability Insurance?
- Peace of mind for you and your business associates
- Protection against financial loss in defending a claim
- Allows your business to continue to operate during a claim
How much Management Liability cover do I need?
The cover you require will depend on your unique circumstances and the nature of your business. We work closely with our clients to fully understand their needs and find a suitable policy from our A rated insurer partners. We are committed to providing exceptional service and will only recommend cover that will best meet your needs – nothing more and nothing less.
How can I buy Management Liability / Directors’ and Officers’ Insurance?
We can arrange your insurance cover in a matter of days, with prudent advice based on your needs. Our personal approach enables us to find the right cover for you for a variety of purposes. Management Liability Insurance may be just one of a number of insurances you require, so by speaking to our expert advisers we can create a bespoke insurance programme to incorporate them all. You can call us on 01480 272727 or send an email to us at enquiries@barnesinsurancebroker.co.uk
