Management Liability Insurance is designed to cover the cost of legal action and any civil settlements from allegations of wrongdoing, directed at the company as a whole or its managers, directors, and officers.
Who is at risk?
All types of business- Sole Traders, Partners, Company Directors, Managers Officers / Trustees and those in ‘positions of responsibility and carrying a duty of care’
Claims may be due to a number of things such as –
- HMRC involving financial or tax anomalies.
- Employment law, such as unfair dismissal, bullying or discrimination.
- Partnership disputes
- Shareholder disputes within provider companies
- Official investigations (such as, NHS England and the Health & Safety Executive)
- Regulatory such as Data Protection or those relating to the Care Quality Commission
- Common Law including incidents like environmental pollution.
Property owner obligations
There are further complications if you own and rent property, either commercially or as a private landlord. In such cases there are additional responsibilities to consider pertaining to HSE legislation like maintenance and repair, certification for gas, electricity, and carbon monoxide, plus issues relating to fire safety for example.
You can find out more about our commercial property owners insurance here
As a company director, officer or manager, you have unlimited personal financial liability for any decisions or actions or you take. It is not just your business which needs protecting in the event of a claim: individuals can be called to account for their decisions and actions, even if they are retired.
Risks of not having cover:
- Criminal prosecutions
- Stress and suffering for you and your family
- Disqualification as a Director
- Custodial Sentence
- Loss of job, business and professional reputation
It can seem like a minefield. Fortunately, that is where Management Liability cover comes in.
Why choose Management Liability insurance
from Lloyd & Whyte?
Our solution can provide you with three covers in.
Our Management Liability includes Directors and Officers Liability, Entity / Corporate Legal Liability Covers and you can also opt to include Employment Practices Liability as additional cover:
Directors and Officers (D&O) Liability
D&O Liability covers directors against personal lawsuits in civil courts since directors have unlimited liability at law. It provides directors with cover for defence costs and compensation awards/damages, plus cover against any personal criminal defence costs but not any fines or penalties imposed.
Entity / Corporate Legal Liability
Covers the ‘company’ or entity for claims made against it. Cover for defence costs and damages is provided.
Employment Practices Liability (additional option to consider)
Covers directors and officers, or the company, against lawsuits relating to Employment Practice. Cover for defence costs and compensation awards.
You could even be held personally liable for not sharing this information.
If you knew that another Director or Officer of a business can sue you personally for not organising, or at least consulting the board or management team, about Management Liability insurance would you delay in any longer?”
Don’t delay and obtain a quotation and show it to your management team today…
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