Management Liability Insurance
Directors and managers of private companies face the risk of legal action brought against them by an ever growing number of parties. These include regulators, employees, shareholders, creditors, customers, environmental groups and suppliers.
Directors and Officers (D&O) insurance does not normally cover claims made against the company itself and accordingly will not adequately protect a private company. As a result, in the context of a private company owned by the directors, the directors and their personal assets may be exposed to potential claims even if a D&O policy is in place.
Management Liability (ML) insurance is designed to provide a comprehensive insurance package for private companies. A Management Liability policy generally includes the following types of cover:
Directors and Officers Insurance – provides cover for:
- corporate executives against loss suffered by them as a result of allegedly breaching their corporate duties; and
- the company, against loss suffered by it as a consequence of reimbursing its directors or officers, for those claims made against its directors or officers, in respect of which the company is legally entitled to, and has, indemnified the directors or officers
Entity/Company Cover – provides cover for the Company for claims against the entity alleging wrongful acts.
Employment Breach – provides cover for the Company against claims arising from a variety of employment related claims. Examples of the types of claims covered include:
- unfair dismissal;
- sexual harassment or workplace harassment;
- breach of employment contract;
- defamation from employment related matters; etc
Crime Cover – provides cover for the Company against claims arising from employees’ fraudulent or dishonest acts.
Statutory Liability – provides cover for the Company where a regulatory/Government body impose a fine upon the company for breach of their statutory requirements.