What Is Management Liability Insurance?

What Is Management Liability Insurance?

Management liability insurance is a set of coverages designed to protect your company and the people leading it from a variety of business risks.  No matter how big or small your company is, your company and its leaders can be affected by litigation, and your executives and board of directors can be exposed.

Management Liability Policies provide you with the option to select the following coverage’s for your business or organization;

  • Directors & Officer Insurance (D&O)
  • Employment Practices Liability Insurance (EPLI)
  • Fiduciary Liability
  • Cyber
  • Crime
  • Workplace Violence
  • Kidnap & Ransom Insurance

 

What does each coverage provide?

 

Directors & Officer Insurance (D&O)

D&O protects a company and its leaders from financial loss resulting from litigation and regulatory investigations.  This policy protects your corporate leaders from litigation related to misuses of company funds, misrepresentations of company assets, breach of fiduciary duty, non-compliance, and more.

 

Employment Practices Liability Insurance (EPLI)

EPLI covers legal costs and damages resulting from employee lawsuits filed against the company.  EPLI will protect your company and its management in cases of alleged harassment, discrimination, wrongful termination, failure to promote, and more.

 

Fiduciary Liability

This policy will cover defense costs and damages related to claims against fiduciaries who administer and oversee employee benefit plans.  It is basically an errors and omissions policy specifically designed for trustees and other fiduciaries who are in charge of running complex company benefit programs.

 

Cyber

Cyber protects your company in the event of a data breach or cyber attack.  If your company is attacked and sensitive business information is compromised, this policy will pay the costs of notifying your customers, civil damages if you are sued, computer forensics, and possibly extortion.

 

Crime

Crime coverage protects your business against criminal behavior of a dishonest employee or third party.  Crime Insurance provide coverage for loss of money, securities, or other assets resulting from acts such as employee theft, certain types of fraud by third parties (forgery, for example), theft of property from the premises, and social engineering (impersonation fraud).  Crime coverage may be purchased either under a commercial package policy or a management liability policy.

 

Workplace Violence

While no one wants to imagine violence in the workplace, consider the importance of preparing for the possibility.  Proactively implementing strategies to protect and train your employees and mitigating the potentially staggering financial impact can help your employees and organization recover if the unimaginable happens.

 

Kidnap & Ransom Insurance

Success attracts respect, recognition and rewards, yet may leave you vulnerable to kidnapping and extortion attempts. This policy option pays for the vital services of Control Risks Group, a kidnap extortion and crisis management consulting firm. Experts help manage all aspects of the situation, work toward the safe return of the victim and negotiate ransom requests. They also try to identify those responsible, assess the circumstances and search for a motive.

 

How Much Does Management Liability Insurance Cost?

Just like any other business insurance that your company needs to purchase, there are many different factors that will determine the cost of your management liability insurance, including the following:

Industry: The greater the risks associated with your industry, the more expensive your insurance will be.

Longevity: If you are a brand new business, you will pay more for your management liability insurance than a business that is financially stable and has been successfully operating for several years.

Number of Employees: The more employees you have, the more you will have to pay for most types of insurance, EPLI most notably.

Claims History: If your business has a history of management liability claims, you will pay more for your D&O insurance and EPLI.

 

If you have any questions, please reach out to me or my team in any of the following ways;

JOHN DUMBAUGH

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Are you ready to save time, aggravation, and money? The team at Dumbaugh Insurance is here and ready to make the process as painless as possible. We look forward to meeting you!

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