Management Liability Insurance Explained

Management Liability Insurance Policies Explained

While every business is unique, there are universal exposures that all businesses face. In addition to insuring your specific risks, you need to consider coverage that will protect you from common exposures generated by everyday business operations. For larger organizations, the diversity of risk combined with the increased probability of higher claim frequency means the use of a variety of insurance policies is often more effective. However, for smaller organizations that face similar risks on a reduced scale, a combination of such policies may be a better option. Many carriers have developed special combination policies to address the unique needs of management teams in small- to medium-sized businesses.

Management Liability Insurance is a hybrid policy that combines several coverages essential to standard business operations that are normally sold individually.

Management Liability Insurance Policies commonly include:

Directors and Officers Liability: Covers losses caused by a director or officer’s alleged mismanagement or improper conduct.

Employment Practices Liability: Covers losses resulting from employment practices disputes, such as claims filed for discrimination, sexual harassment and wrongful termination.

Fiduciary Liability: Covers losses resulting from mismanagement of employee benefit and pension plans.

Professional Liability (also Errors and Omissions /E&O ): Covers losses resulting from negligent acts, omissions or errors.

Crime Insurance: Covers losses resulting from employee or outsider criminal activity such as theft, fraud, dishonesty, disappearance and destruction and employee dishonesty.

Benefits of Combined Management Liability Insurance Policies

Management Liability Insurance policies can offer a level of protection not available through individual coverages. The combined nature of management liability policies allows for fewer gaps and broader coverage definitions. Because  in some cases limits can be shared management liability policies may also come at a reduced cost when compared with buying all of the included coverages typically included in a management liability policy individually.

Coverage Comparison Of Management Insurance Is Essential 

There is no single standard policy for management insurance, making coverage comparison essential. At ALIGNED Insurance we have the resources and expertise to analyze your needs to help you choose the policy that best fits your business.  Call an ALIGNED Adovocate today at 1-866-287-0448 or connect with us at www.alignedinsuranceinc.com today to be sure you’re operating with the protection you need.