Management Liability Insurance protects you and your company against the risks and exposures of running the company (i.e. your liability for mismanagement).
Without adequate protection you could risk losing, not only your business, but also your personal assets. This insurance therefore protects you personally and therefore your wealth and lifestyle. The legal costs to defend allegations of wrongful acts alone can be financially crippling for businesses and individuals.
Management Liability Insurance not only protects Directors & Officers for legal liability they may incur personally in managing a corporation, it also extends to the corporation itself for certain types of claims.
It’s an ideal insurance for small businesses and the most common form of incorporated entity to which Management Liability Insurance is offered is for a proprietary company.
The primary rationale behind extending cover to proprietary companies beyond the realm of a traditional Directors & Officers Insurance policy is that protecting the assets of the private company for many Directors & Officers is protecting significant ownership in those assets through their personal shareholding.
Management Liability Insurance will generally cover the following amounts in relation to the above actions:
- Representation costs where a Director or Officers is legally required to attend an inquiry or investigation relating to the affairs of the corporation
- Legal costs & expenses in the defence and investigation of a Directors & Officers claim
- Any compensation required to be paid by the insured in order to dispose of a Directors & Officers claim.
Actions against the corporation or losses sustained by the corporation generally covered by a Management Liability Insurance policy include:
- Directors & Officers liability
- Company reimbursement
- Company liability
- Employment practice liability
- Trustee liability
- Business crisis consultant fees
- Representation costs in respect of an occupational health & safety investigation
- Direct Financial Loss.
PSC Connect Authorised Representatives specialise in Management Liability Insurance and can provide cover specifically tailored to your company. Through leading insurers, our Authorised Representatives can offer a comprehensive range of products that can be tailored to suit most risks.
Our experienced PSC Connect Authorised Representatives can help you get the right insurance cover by assessing your specific needs and recommending the best value insurance solution for your business, whilst still maintaining the highest standard of cover.