Management Liability Insurance 

Specialized Coverage for Unique Business Risks

In today's fast-paced world, businesses are dealing with an increasing multitude of risks, such as claims directly against Directors and Officers, cyber crimes, data breaches, employee policy issues, litigation and more. Without insurance, you could lose everything: your clients, your reputation, your company – even your personal assets. 

Purchasing Management Liability Insurance can help protect your business from a wide range of broad-level exposures as well as paying costly legal fees, court expenses, and lawsuit settlements. 

Consider the following types of management practices liability insurance coverage to help protect your business.

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Directors & Officers Insurance (D&O)

D&O insurance protects the personal assets of corporate directors and officers in the event they are personally sued by the organization’s employees, vendors, competitors, investors, customers, or other parties, for actual or alleged wrongful acts in managing the company.

D&O insurance is an important aspect of a corporate risk management strategy and can cover defense costs, settlements, and other costs associated with wrongful act allegations and lawsuits. 

According to a recent Chubb study of private companies, more than 1 in 4 private companies experienced a D&O claim in the last three years, and the average loss was just under $400,000. 

D&O insurance helps cover claims of:

• Misuses of company funds
• Misrepresentations of company assets
• Breach of fiduciary duty
• Failure to comply with workplace laws
• Lack of corporate governance

A company pays for this coverage so executives can serve confidently as leaders of their organization without fear of personal financial loss.

 

Cyber Liability & Data Breach Insurance 

Cyber Liability and Data Breach Insurance provide broad coverages to help protect businesses from various technology-related risks. It offers protection for both the direct costs businesses may face and lawsuits that are brought against a business by a third party as a result of a breach.

A data breach affects your business in the following ways:

• Threatens to destroy your financial well-being and the future of your business
• Damage your reputation
• Puts your customers and/or employees at risk
• Lost business
• Costly legal defense expenses

According to the World Economic Forum, cyber-attacks are cited as No. 2 in the top 10 global business risks. With Cyber Liability and Data Breach Insurance, you can spend less time worrying about cyber threats and more on what matters most – running your business.

* Cyber Insurance is often excluded from a General Liability policy.

 

Errors & Omissions Insurance (E&O)

This specialized liability insurance protects you and your business from claims if a client sues for negligent acts, errors or omissions committed during business activities that result in a financial loss.

Errors & Omissions Insurance, also known as Professional Liability Insurance, can be customized to the unique risks faced by an assortment of professionals – no matter the industry. Your business’ financial security can depend on how well protected you are from a lawsuit or claim.

E&O insurance helps cover claims of:

• Mistakes or negligence
• Copyright infringement
• Misrepresentation
• Inaccurate advice

If your client believes you made a mistake, they can still sue your business – even if you didn’t do anything wrong. Without E&O coverage, you will have to pay for expensive legal defense costs out of pocket.

 

Employment Practices Liability Insurance (EPLI)

The average cost of defending and settling an employee claim is roughly $160,000 and on average took 318 days to resolve. 

EPLI offers broad protection should a business be sued by an employee over wrongful termination, sexual harassment, or another violation of employee rights. This coverage protects your business if you improperly manage employee benefits, including health insurance, paid time off, and sick leave.

Companies big or small need EPLI coverage. The risks increase for new or small businesses because they often lack a legal department or handbook detailing the policies.

EPLI protects employers from claims made by employees alleging:

• Discrimination (based on sex, race, age, or disability)
• Harassment
• Retaliation
• Violation of the Family and Medical Leave Act
• Wrongful discipline or demotion
• Wrongful failure to promote or wrongful termination
• Breach of employment contract
• Privacy invasion

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