Risk is inherent in everyday management decisions and business relationships. Businesses in every industry of all sizes, including private, not for profit and publicly held organizations, can be affected by litigation against the company, the executive team, and the board of directors. Utilizing management liability insurance is a cost-effective risk transfer tool that all companies and executives should fully understand to protect both the company balance sheet and the personal assets of the management team.
Management liability is the term commonly used to describe a package of various insurance policies designed to protect a corporation and its directors and officers. This package protects your facility and it's employees against circumstances not covered under a traditional commercial general liability policy.
Commonly, a management liability package will contain coverage for Directors and Officers Liability (D&O), fiduciary liability and employment practices liability (EPL). Depending on the various exposures and risk tolerance of the insured, policies can be bundled together with a combined limit or structured with a dedicated limit for each line of coverage. Details on each of the coverages are included below.
Directors & Officers Liability (D&O)
- Employer sponsoring the plan
- Any individual serving as trustee, director, officer or employee of the plan
- Any other person or organization specified by the policy
Employment Practices Liability (EPL)
- Harassment (sexual or otherwise)
- Retaliation by employer
- Wrongful termination
- Failure to employ/hire/promote/grant tenure
- Liable, humiliation, slander
- Violation of an employee’s civil rights
- Infliction of emotional distress
- Deprivation of career opportunities
Like to know more? Click here to read more about our Management Liability offer and to speak with one of our insurance professionals.