Management Liability Insurance
In a more and more litigious society, claims of wrongdoing are on the rise, and customers, shareholders, investors and even other employees seek to hold people accountable for mistakes and problems.
Business Insurance | Professional Risks Insurance |
Management Liability Insurance covers compensation claims and legal defence costs for claims made against the company, directors and officers.
When you are the director or senior manager of a business, you are responsible for making decisions, ensuring they are in the business’s and its people’s best interests. Unfortunately, not all decisions are correct, and some of the wrong ones can lead to claims arising from accidents, unfair dismissal, discrimination, a failure to consult, and the defence of fraud investigations.
You can be held personally responsible and/or liable for the incident, depending on the circumstances. In these scenarios, Management Liability insurance can support you by providing legal support or costs towards your support and any financial settlement.
Management Liability Insurance can be a tailored package of covers and limits that offers individuals and your business financial protection and legal support from civil litigation and regulatory investigations.
Cover yourself and your directors, so you’re not personally liable for breaches, discrimination or dismissal.
What insurance cover can we arrange for
Management Liability Insurance
We arrange for insurance for Management Liability Insurance that can include:
Corporate Legal Liability Insurance
Corporate legal liability insurance (CLL) is purchased as part of a management liability insurance package, which includes directors’ and officers’ (D&O) insurance. The aim is to protect your business if a claim is made against it.
Criminal Activity Insurance
Also known as fidelity insurance, crime insurance covers your business for financial losses as a result of theft, fraud or dishonest activity.
Directors’ and Officers’ Insurance
D&O insurance reimburses the defense costs incurred by board members, managers, and employees in defending against claims made by shareholders or third parties for alleged wrongdoing. D&O insurance also covers monetary damages, settlements, and awards resulting from such claims.
Employment Practices Liability
When a company’s workers claim their legal rights as employees have been violated, employment practices liability insurance can protect against resulting litigation.
Management Liability Insurance
Management liability insurance covers your business & people: directors & officers insurance, employment practice liability & corporate legal liability.
Questions?
Ready to protect your scale-up with insurance that matches your ambition? Contact us today to start a conversation. Let’s build a insurance roadmap that powers your growth and reflects your values.
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As one of the UK’s fastest growing insurance brokers, Jensten Insurance Brokers, is an award-winning broker with specialist advisers across multiple classes of insurance cover and sectors. Our track record of delivering for clients makes us a leading choice.
We also strive to be an employer of choice, giving our clients access to passionate, talented advisers, and our people an enjoyable and rewarding career.
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Management Liability Insurance FAQs
This is one of the more complex areas of cover, so to help you get the protection you need, here are our Management Liability Insurance frequently asked questions. We hope they will help, but if you’d like some independent advice, please call us on 01903 444 951 and we’ll be only too happy to help.
Traditionally known as Directors & Officers Insurance, Management Liability Insurance protects company directors, senior managers and officers of charities, boards, and committees if a negligence claim is brought against them in court or at an employment tribunal. The policy can also cover legal action against the company itself.
It’s the thing you wish you didn’t have to think about, but this type of insurance can also be seen as a protection against your personal assets to protect your family.
Cover extends to anyone who makes a claim against your company, from employees, customers and suppliers to shareholders and competitors.
There are many types of claims that management Liability can pay for you, and whilst these are not exhaustive, they illustrate just how it can protect people and the business.
Misleading investors – example: The FD of a startup business presents incomplete or misleading information to an investor who loses money as a result.
Defamation – example: A company’s Managing Director was quoted in two articles as having concerns about the behaviours of the owner of one of the company’s competitors. The owner claimed for defamation.
It is important to remember that a claim can arise from a wide range of circumstances and that they don’t have to be justified and factual to initiate costly legal defences:
- Mismanagement
- Negligence
- Unfair dismissal or discrimination
- Libel and slander
- Breach of fiduciary duty to the company (common law) Breach of statutory duties
- (legislative breaches, including The Companies Act), Misrepresentation/Misstatement
- Trading whilst insolvent Acting outside a manager’s authority/powers
- Sexual harassment
- Anti-competitive behaviour
- Regulatory Investigations such as the Health & Safety Executive and HM Revenue & Customs or the relevant regulatory body by industry
Claims can come from anywhere – Employees, shareholders, your company, creditors, regulators, customers, competitors, the Government, other directors and suppliers or anyone else who feels that they have suffered a loss arising from the Director wrongly acting in their position.
It can benefit all manner of businesses and not-for-profit organisations. With threats ranging from employee action and misconduct by a director to investor action, it can offer protection in a range of circumstances.
Getting a quote is easy. Simply call our friendly team of specialists on 01903 444 951 and they’ll be happy to help.
