MANAGEMENT LIABILITY – ARE YOUR PERSONAL FINANCES PROTECTED BY THIS ESSENTIAL COVER?

At Affinity Brokers, we pride ourselves on our ability to look after our clients’ insurance needs and deliver great, independent service – every time. This includes making sure that you’re not exposed to any undue risk by recommending covers that are vitally important but that are often overlooked.

One such cover is Management Liability Insurance. You might have heard of it, but do you know what it does and how it can protect your personal finances if your leadership comes under fire?

What Is Management Liability?

Management Liability covers you for any claim or regulatory action brought against any director, officer, employee or the company itself, where there is an allegation of a Wrongful Act, covering a limited period after retirement or a management buy-out. This cover flexibly adapts to most changes in your company (such as the purchase of another company) and provides you with expert legal advice. Directors and Officers Liability comes into effect in the event of any claim or regulatory action brought against any trustees.

What Covers Does It Include?

Examples of cover provided under a Management Liability policy include Directors’ & Officers Liability, Corporate Liability, Entity Employment Practices Liability and more. But what are these covers and how do they work?

Director’s & Officer’s Liability – a director, officer or trustee of a company has a lot of responsibility.  While this means they are often the face of a company’s successes, it also means that they can be held accountable is something goes wrong.  It is increasingly common for employees, shareholders, clients and even governing bodies to take legal action directly against directorial staff, rather than a company as a whole, if they feel the actions (or inactions) of company’s senior staff have caused them physical, emotional or financial harm.

Corporate Liability – Just as Director’s and Officer’s Insurance recognizes the liabilities of the individual, Corporate Liability Insurance is designed to defend the company as an entity. Your business can be covered for civil and criminal defence costs if one of its employees has been accused of wrongdoing, such as fraud, environmental violations, and any other civil or criminal breaches. When paired with Directors and Officers Insurance, businesses can bridge any gaps in their liability cover for most eventualities.

Entity Employment Practices Liability – Everyone wants, and has the right, to be treated fairly at work. In cases of wrongful termination, discrimination, or sexual harassment among other employment transgression, they also have a right to make a claim. The legislations around employment law are so complex that they warrant their own insurance protection, and Entity Employment Practices Liability can protect both the individual decision makers and the company against claims made by employees.

Is Anything Else Included?

At Affinity, Brokers, we can tailor a Management Liability Insurance policy to suit your needs, which means we’re also able to include extra covers in addition to Directors’ & Officers Liability, Corporate Liability and Entity Employment Practices Liability.

This can include cover for financial loss following employee dishonesty, loss of documents (including electronic documents), cyber liability, breach of contract and pollution clean-up costs.

To find out more about what a Management Liability policy could offer you, give us a call on 0141 221 9344 or email enquiries@affinitybrokers.co.uk today.