Management Liability

Do you need it?

Most of us wouldn’t think twice about insuring our businesses against theft, fire and personal injury. , but what about insuring yourself and your staff against the risks that come with running a business? Management Liability insurance can offer protection if you or a senior staff member makes a mistake or engages in misconduct that negatively impacts a third party.

WHY DO YOU NEED IT?

If you sit on the board of a private organisation or indeed any business, then you should contemplate taking out Management Liability insurance. Management Liability insurance is designed to protect the owner and director of a business, and anyone else who is a director of the business, from the risks and exposures associated with running a company.

What does it cover?

Claims against a Director or Officer or their business could include:

Bullying
Breach of duty
Defamation
Discrimination
Fraud
Harassment
Occupational Health and Safety
Theft by employees or contractors
Unfair dismissal.

Management Liability insurance can typically protect against some or all of these risks:

Damages and claimant costs awarded against you
Legal fees
Investigation costs
Civil fines and penalties
Representation costs where you are legally required to attend an inquiry or investigation regarding company affairs.

What People Say

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Frequently Asked Questions

HOW DO I MAKE A CLAIM?

If you need to file a claim with My Insurance Specialist, you can visit our claims page for more information. This page is designed to provide you with a straightforward and streamlined process for reporting a claim and getting the support you need to resolve any issues as quickly and efficiently as possible.

Who needs management liability insurance?

Any company that has executives, directors, or officers can benefit from management liability insurance. This includes public and private companies, non-profit organizations, and even government entities. It’s important to note that even if a company has robust risk management procedures in place, executives and officers can still be exposed to risks that may lead to legal action. Management liability insurance can provide financial protection for these individuals and the company.

What are some examples of management liability claims?

Management Liability claims refer to the legal actions taken against an employer by an employee or a former employee, for various employment-related issues that are not covered by workers’ compensation. These claims are becoming more common, and the costs of defending against them and paying damages can be quite high.

Discrimination claims can arise from a variety of reasons, including age, gender, race, disability, or religion. Sexual harassment claims are also a common issue that can lead to legal action, and can take the form of unwanted sexual advances, physical contact, or inappropriate behavior. Wrongful termination claims can be brought by employees who believe they were fired for illegal reasons such as retaliation or discrimination. Workplace bullying is another issue that can result in legal action, and can involve verbal abuse, intimidation, or other forms of mistreatment that create a hostile work environment.

Management Liability insurance can help protect businesses from the financial impact of these types of claims, which can be significant, and can include costs associated with legal defense, settlements, and damages. By having this type of insurance coverage in place, businesses can have peace of mind knowing that they are protected from potential liability claims that can arise from employment practices.

What factors affect the cost of management liability insurance?

The cost of management liability insurance can vary based on several factors. Some of these factors include the size of the business, the industry in which it operates, the type of coverage required, the level of risk involved, and the history of claims.

For instance, larger businesses with more employees and higher revenues may require higher coverage limits, which can lead to higher premiums. Similarly, businesses in industries with a higher risk of lawsuits or regulatory actions may also pay higher premiums. Additionally, businesses with a history of claims or litigation may face higher premiums due to a higher perceived risk of future claims.