Management Liability Insurance

With huge increases in claims against business owners and directors over the years, whether relating to health and safety breaches, age discrimination and unfair dismissal, to name a few - it is of paramount importance, that you are protected with a Management Liability policy.

So what is Management Liability insurance?

More commonly known as Directors and Officers Liability, Management Liability Insurance protects business owners, directors, senior managers and board committees against claims for negligence, brought against them or at an employment tribunal. Policies can also include cover for legal action brought against the company, as opposed to an individual.

Management Liability insurance is broken into three forms of insurance, these are as follows;

• Directors and Officers Liability - this covers claims against the director or officer
• Corporate Liability Insurance - this covers claims made against the limited company
• Employment Practice Liability - this covers claims as a result of employment tribunals

So why should you have Management Liability Insurance you ask?

As a Director of the business, you have obligations under the companies act 2006 - having this cover protects you where there is failure of your directors’ duties, actions or responsibilities. The companies act details duties that directors must comply with and in the event of a breach, could be held personally liable.

As statistics have it, you are more likely to have an employment tribunal - than a fire at your premises.

Management Liability Insurance helps close up gaps in cover by limited liability status (not applicable to directors’ personal assets) or legal expenses cover (invalid where a successful defence is unlikely, due to prospects of success clauses).

MLP Insurance extends to anyone who makes a claims against your company - whether this be from employees, customers, suppliers, shareholders or competitors.

The above is a short guide with reference to Management Liability Insurance and coverage varies from insurer-to-insurer, albeit these are the basic principles - so some covers, can be further complimented / enhanced.

If you would like a review of your current insurances, with no-obligation, please let us know.