Management Liability Insurance

Management Liability Insurance can be a tailored package of covers that offers individuals and your business financial protection from civil litigation and regulatory investigations.

The coverage can be tailored to meet your business needs and can include:

• Directors’ and Officers’ Insurance – your policy covers the cost of defending a claim made against any company director or officer
• Employment Practices Liability – you can also be covered for legal defence costs and compensation awards made by employment tribunals
• Corporate Legal Liability – can be included to extend your cover to include claims made against the limited company
• Criminal Activity – optional protection against losses arising from employee theft of money, securities or other property belonging to your company or its clients

There are many types of claims that management Liability can pay for you, and whilst these are not exhaustive, they illustrate just how it can protect people and the business.

Misleading investors – example: The FD of a startup business presents incomplete or misleading information to an investor who loses money as a result.

Defamation – example: A company’s Managing Director was quoted in two articles as having concerns as to the behaviours and of the owner of one of the company’s competitors. The owner claimed for defamation.

It is important to remember that a claim can arise from a wide range of circumstances and that they don’t have to be justified and factual to initiate costly legal defences:

• Mismanagement
• Negligence
• Unfair dismissal or discrimination
• Libel and slander
• Breach of fiduciary duty to the company (common law) Breach of statutory duties
  (legislative breaches, including The Companies Act), Misrepresentation/Misstatement
• Trading whilst insolvent Acting outside a manager’s authority/powers
• Sexual harassment
• Anti-competitive behaviour
• Regulatory Investigations such as the Health & Safety Executive and HM Revenue & Customs or the relevant regulatory body by industry

Claims  can come from anywhere – Employees, shareholders, your company, creditors, regulators, customers, competitors, the Government, other directors and suppliers or anyone else who feels that they have suffered a loss arising from the Director wrongly acting in their position.