Management Liability Insurance
When considering insurance for your business, most people naturally consider the tangible assets of the company. However, as a business owner or director making operational decisions day in, day out, what protection is in place to cover you as an individual? Whilst operating a business, there is a vast array of operating exposures, which if not adequately covered, could have crippling financial implications for your business, and you as an individual [the Director of the company].
What is management liability insurance?
Management Liability Insurance is an efficient packaged suite of coverage for exposures faced by directors, officers, managers and business entities, generally in the SME market. It can prove a vital component in any business owners’ risk management toolkit and will normally cover the following risks:
- Provides protection for directors & executive management of a business where you can be personally liable for any actual, or alleged mismanagement of the company whilst performing your duties within the business.
- Offers protection to both you and the company for fines and/or pecuniary penalties imposed by a regulator, for which you are liable to pay (where indemnifiable by Law) for unintentional breaches of certain statutes.
- Claimant alleged that they were made redundant due to having a workers compensation claim settled out of court. A settlement as well as legal costs were paid.