Management Liability Insurance FAQs

Management liability is a type of commercial insurance cover designed to protect individuals who hold positions of authority within a business. This includes directors, officers, and managers, and protects them against claims that may result from their leadership or management activities. A management liability insurance policy can include many different elements, such as Directors & Officers Liability, Corporate Legal Liability, and Employment Practice Liability.

Management liability insurance covers against claims arising from the leadership and managerial activities of directors and officers within a business. This includes allegations of breach of duty, negligence, misstatements, employment-related disputes such as discrimination or wrongful termination, and even mismanagement of employee benefit plans. Essentially, it provides a safety net for corporate leaders as well as the organisation itself against potential legal liabilities stemming from their management roles.

While management liability insurance coverage isn’t a legal requirement, it should be an essential consideration for directors, officers, and managers of an organisation. Whether a small business or a large corporation, these individuals can be held personally liable for decisions and actions taken in their managerial capacities. With a suitable management liability policy, they will be financially protected should a claim of this nature be made against them.

Management liabilities refers to the responsibilities and potential legal exposures faced by individuals who hold positions of authority within a business. In the event of negligence or breaches of duty, it’s possible that these liabilities could lead to legal claims being made against them. Management liability insurance provides financial cover should this happen.

Management liability insurance and employers’ liability insurance are not the same. Management liability insurance covers directors, officers, and managers against claims arising from their leadership and managerial decisions. Employers’ liability insurance, on the other hand, specifically protects businesses against claims from employees who have suffered injuries or illnesses due to their work. While both types of insurance address liabilities businesses might face, they cater to different aspects of operational risks.

Management liability insurance is a broader coverage that can encompass various liabilities faced by management and leadership roles within an organisation. Directors and Officers insurance (D&O) is a specific subset of management liability that exclusively protects the personal assets of directors and officers. While D&O is often a significant component of management liability insurance, it doesn’t cover the full range of managerial risks. A management liability policy from Higos will include D&O insurance, as well as other elements such as Corporate Legal Liability and Employment Practice Liability.

For a tailored management liability insurance quote, get in touch! You can find details of all our branches on our website, or complete our call back form and one of our specialist team will get back to you at a time of your choosing.