Being in charge of a business and coming to regular decisions that affect not only the company itself but also anyone involved is an incredibly heavy responsibility. While the right decisions, timing and more can lead to profitable actions and growth, it’s inevitable that some choices will lead to problems, including financial loss. This may be due to mistakes or something completely out of anyone’s control. However, acquiring a management liability policy means that your business can have protection in a case where your directors, officers, employees or others involved in your company are faced with costs from poor decisions, indemnifying, lawsuits and more.
Parts of Management Liability
Of course, every insurance company is different, meaning that the exact details of coverage will vary from one to the next. However, management liability policy programs typically cover one or more of the following types of insurance:
- Directors and Officers (D&O)
- Employee Practices Liability (EPL)
- Fiduciary Liability
- Crime (Theft, Fraud, Dishonesty)
- Special Crime (Kidnap, Ranson, Extortion)
- Corporate Entity
Furthermore, some insurance companies may have specific policies depending on if your business is public, private or non-profit. Others may cover any type of company or industry but can work with you to organize a management liability policy which is focused on the areas in which you are particularly at risk.