Management Liability Insurance
What is Management Liability Insurance?
Historically, Management Liability was bought as a Directors’ and Officers’ policy also known as D&O. It was predominantly cover placed by the company to protect directors of a business and perceived to be an insurance cover that only large or complex companies needed to purchase. However, with changes in legislation and the spotlight on corporate governance, data, mental health, and staff wellbeing the exposures faced are relevant to all companies regardless of size.
Over the last decade, the market has seen a rise in claims filed against the company and its directors, which without a Management Liability Insurance policy could lead to personal liability for any claims awarded against you.
As a result of the rise and type of claims, the scope of cover under a Management Liability Insurance policy has evolved and the range of cover options can be tailored to the demands and needs of your business.
However, more recently the market has hardened causing premiums to increase and a number of insurers to restrict cover and benefits within their policies. In the current economic conditions Insurers are very focussed on liquidity and level of debt investment and where necessary have looked to exclude fundamental protection such as insolvency from their standard cover.
Recently, the market has grown more stable, and premiums and coverage are beginning to return to a steadier level; nevertheless, some exclusions are still in place until specifically requested to be removed.
Do I need Management Liability Insurance?
With an increase in claims being made against companies and individuals, it is important to consider Management Liability as part of your insurance portfolio.
Companies can limit their liabilities, but directors and officers may not have the same protections, therefore their personal liability exposure may be uncapped. Management Liability insurance can provide cover for a variety of exposures including but not limited to:
- Breaches of regulatory authority
- Employment claims
- Shareholder action
- Corporate manslaughter
- Pension trustees
- Outside directors
- Data protection
Broader policy cover should be taken into consideration to cover areas such as Corporate Legal Liability and Employment Practices Liability (EPL) Insurance due to the rising risks faced.
Employment Practices Liability
This insurance can aid in defending employers against claims filed by members of staff alleging discrimination on a wide range of different employment-related issues. This can include things such as illegal contract terminations, harassment, and age, sex, and disability discrimination. Without accounting for the reputational damage that results, the expense of defending can be costly, and the business must defend its position even if the claim is unfounded.
Our Professional Risks team at Jensten not only understands the cover provided but also the exclusions, your obligations, and how this relates to the way your business trades to make sure the cover meets your needs.
Management Liability is a specialist class of insurance that, if not understood, can leave your business exposed to potentially crippling costs.
Find Suitable Management Liability Insurance For You
For more information on Management Liability insurance and to discuss how this might suit your business, simply contact the team on 01903 444 951. Alternatively, you can request a callback below. Our team will be more than happy to discuss your policy needs and answer any questions you may have.