Management Liability Insurance

 

 

Today’s companies, and their directors and officers face an unprecedented level of management liability risk. The severity of securities, employment practices and other management liability settlements continue to soar.

Management liability insurance is a hybrid coverage that delivers a wide range of protection to private business owners and principals. It combines several areas of risk traditionally marketed as separate policies, including:

  • Directors & Officers Liability Insurance
  • Employment Practices Liability Insurance
  • Fiduciary Liability Insurance
  • Professional Liability Insurance

This specialized coverage may be offered as an option.  For an additional premium on a Business Owners Policy (BOP)  or Commercial Package Policy (CPP). It can also be included in a customized commercial insurance plan.

Shopping for Management Liability Insurance?

I can provide the expertise to help you identify your exposures and simplify your insurance purchase, providing the information you need to make an informed decision. I will work with you one-on-one to identify the management liability coverage plan that suits your specific needs.

Comparing Management Liability Coverage.

I offer Management liability insurance policies from a wide range of top ranked insurers. There is no “standard” policy. Therefore, coverage analysis and comparison is a must. With over 35 years of commercial insurance experience, we have the know-how and industry contacts to match your needs with the plan that best matches your risk management and financial goals. All of the insurers we represent have received ratings of A- (excellent) or better from A.M. Best Company.

What Are the Advantages of a Management Liability Insurance Policy?

A Management Liability Policy may offer a level of protection not available through the purchase of separate D&O, E&O, EPLI and Fiduciary Liability policies, or may offer the same coverage at a lower cost.

Features may include:

  • A broad definition of the insured, including the company, its directors, employees, independent contractors and leased employees
  • Unique securities coverage, including blanket private placement coverage, select IPO coverage and Guaranteed Public Offering of Securities coverage
  • A broad definition of employment practices claims
  • Non-employment discrimination coverage which protects against discrimination and sexual harassment claims brought by third parties (customers and clients), whether brought individually or as a class.
  • Automatic “outside directorship” liability coverage for 501(c)(3) non-profit organizations
  • Coverage for claims brought by partners not involved in the firm’s management — an internal exposure not offered by traditional D&O and E&O policies
  • Coverage for claims of mismanagement or negligence in the day-to-day business decisions made by the firm’s management committee or executive officers
  • Coverage for partnership agreement and compensation disputes
  • Business tort coverage, such as claims for interference with contractual relations
  • Defense for claims seeking enforcing of a contract
  • Spousal coverage
  • Coverage for subsidiaries

Why Was the Management Liability Insurance Policy Developed?

Traditionally, business partners and officers made all of the firm’s business decisions as a collective group. Today, the demands of running the business often require that the firm delegate management responsibility among dedicated committees, so a smaller management team is making the decisions. This corporate management structure exposes the business owners and shareholders to many of the same liability risks faced by the directors and officers of corporate entities. 

Who Should Consider Purchasing a Management Liability Policy?

Management liability protection should be considered by commercial businesses, professional service firms and non-profit organizations where management responsibilities are sometimes delegated to employees or others beyond the entity’s directors and officers.