Management liability, or an executive liability policy is comprised of directors & officers liability (D&O) coverage, employment practices liability (EPL) insurance, along with fiduciary liability. It may also include other non-liability protection such as various crime coverages, kidnap, ransom & extortion, and workplace violence & crisis response.
This type of coverage is needed since employers face risks in their dealings with applicants and employees, whether current and former. Fiduciary liability, much like D&O, is valuable to an employer that sponsors health and welfare plans for its employees since this can involve multiple fiduciary-related exposures to statutory and other liabilities. Axis Management Liability Coverage will protect you and your organization when faced with claims involving allegations of misuse or wrongdoing.
Who may benefit from this policy most?
One of the primary purposes of management liability insurance is to provide protection for individual directors, officers, any other members of management, and the business entity itself for any claims involving mismanagement, breach of a particular duty, or certain regulatory enforcement. In scenarios of this nature, the alleged injuries are always regarding financial dealings by nature, as opposed to issues relating to physical damages, such as bodily injury or property damage.
In the case of D&O concerns, claims could emanate from both outside and inside the firm. For example, an outside party could bring a claim or file a lawsuit for allegations of interference with a contract, neglect or breach of a duty, or misrepresentation. The parties could include competitors, customers, creditors, regulators (compliance), and vendors.
From within the firm, investors, shareholders, key employees, and family members of an employee may generate claims. Activities such as mergers & acquisitions, founding-ownership’s exit, plans to sell the business, and international expansion, or joint ventures taking place in other countries can generate claims.
We’ve seen and heard various news reports about executives being called to answer allegations of sexual misconduct and/or harassment across many industries, with people of fame or celebrity losing positions at companies by firing or resignation. Management liability insurance is often used to pay out multi-million dollar settlements for matters of this type. Axis Management Liability Coverage is the right policy to protect your firm against such costly allegations.