Management Liability Insurance

Management Liability Insurance protects your business financially in cases of alleged wrongdoing. It usually includes three types of cover:

• Directors And Officers Insurance to protect the personal liability and assets of your business leaders.
• Corporate Liability Insurance to protect the business as a whole in claims made against the company.
• Employment Practice Insurance to protect your business and its employees from employment-related action.

Claims of wrongdoing can arise from stakeholders, regulators, members of the public and your own employees. They could concern alleged breaches of trust, health & safety failures, negligence and sexual harassment, among other things.

As businesses and their staff are increasingly being held to account for their actions, having the right cover in place can give you valuable financial protection if a claim is made. This will help you to pay the costs of defence, investigation, damages and compensation. It will also help to protect your leaders’ personal assets.

Management Liability Insurance is made up of different types of cover to provide comprehensive protection for many common business risks.

It therefore usually includes Directors And Officers Insurance, Corporate Liability Insurance and Employment Practice Insurance.

Directors And Officers Insurance protects your past, present and future directors, partners and officers against claims of alleged wrongdoing. This could include mismanagement of pension funds, investment without due diligence or negligence. It provides financial support which can help to pay for defence costs, damages and compensation.

Corporate Liability Insurance is similar to D&O Insurance, but it provides protection to the business as an entity rather than an individual.

Employment Practice Insurance protects your business and its employees in cases of alleged employment practice violations. This could include unfair dismissal,harrassment, discrimination and stress caused by work. This insurance will help to cover the costs of defence and judgement.

Typical indemnity limits start at £1 million, but depending on your business and the sector you work in, you may need more.

MLP Insurance is not a legal obligation.

However, businesses are coming under more intense scrutiny. There is now more emphasis on corporate social responsibility, equality and diversity, and correct management of pension funds. This has increased the exposure of businesses and their leaders to risk.

Protecting your business from claims of wrongdoing can therefore give you valuable piece of mind. With the right cover in place, you can protect your senior leaders, employees and the organisation itself from the potentially huge expenses of defending a claim of wrongdoing and any resulting compensation.

This may sound more suited to large corporations, but even small companies can be faced with claims of wrongdoing. For instance, you could be accused of harassing your staff, or a claim could be raised against you if an employee is seriously injured while working for you.