Management Liability Insurance
(Quotes, Cost & Coverage)

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Learn about management liability insurance aka executive liability insurance. This policy covers exposures faced by managers, directors & officers and businesses as a result of management activities.

Management Liability Insurance

Management Liability Insurance

Holding an executive position with a company can certainly be rewarding, but it also comes with its fair share of risks. Should you make a decision that negatively impacts the organization you are working for, you could be held legally responsible for the effects of the decision you made.

Furthermore, should an action you take affect employees or clients of the organization, you could be held legally responsible.

The risks associated with the role of an executive decision can result in serious legal issues and financial strain. While risk is inherent in this type of position, there is a way that you can protect yourself from them: management liability insurance.

What Is Management Liability Insurance?

Management liability insurance is designed to offer individuals in positions of authority within a company and the company itself against the risks that are associated with running the organization. Without this coverage, management could be at risk of losing their job, losing personal assets, and could be responsible for paying hefty legal fees. Furthermore, without this type of insurance, the entire company could be at risk of being shut down.

What Does Management Liability Insurance Cover?

Typically, management liability insurance is a package that will offer coverage for Directors and Officers Liability, employment practices liability, and fiduciary liability. Based on the risks and exposures that are associated public, private, and non-profit companies, and policies can be bundled with a specific limit for each type of coverage, or with a combined limit for coverage.

Generally, a management liability insurance policy will offer the following types of coverage for each of the three aforementioned areas:

Directors and Officers Liability (also known as D&O)

Employment Practices Liability (also known as EPLI)

EPLI offers coverage for defense-related costs and damages that are related to a company being held liable for a real or alleged violation against employment practices. Shields a company and its present, past, seasonal, temporary, part-time employees, as well as volunteers and those who are applying for employment with the company from the following allegations:

Fiduciary Liability

Claims Commonly Filed Under Management Liability Insurance

While there are several types of claims that can be filed under management liability insurance, the following are examples of the claims that are most commonly filed under this type of insurance:

Sometimes crime insurance (protect assets from loss due to dishonesty, theft or fraud) and kidnap, ransom, and extortion insurance (protecting organizations & high net worth individuals at home & overseas) are covered under management liability insurance policies.

How Much Does Management Liability Insurance Cost?

The cost of management liability insurance varies from company to company. An insurance provider will take several factors into consideration when calculating premiums. Moreover, the amount of coverage that a company will need will also play a key role in the amount that this type of insurance coverage will cost. Management liability insurance vs directors and officers, management liability insurance coverage, management liability claims examples, difference between d&o and management liability, fiduciary liability insurance, professional liability insurance, d&o insurance & employment practices liability.

Management Liability Insurance - The Bottom Line

We hope this article on management liability insurance was informative. Management liability insurance is designed to safeguard a company and its directors, officers, and managers against any claims that may be filed against them. It also protects the company itself. This type of insurance is one of the best ways to shield a company and its executives from potential legal issues.

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