Management liability insurance is a type of insurance that will protect the directors, officers and the company from any management-related risks. This insurance is offered due to the possible personal liabilities held against those in management.
What Is the Importance of Management Liability Insurance?
Company owners and managers will be able to sleep better at night knowing that they have this coverage as it can be a great way to protect themselves from possible troubles with the company. Liability insurance can be quite expensive, though. If you are in a situation where you are not able to afford it, there are other options that you can look into.
What Are the Kinds of Management Liability Insurance?
There are different kinds of management liability insurance. Each type has different coverage and is meant for various situations. To learn more about these products, keep reading below.
1. Directors and Officers Liability (D&O)
As the name suggests, this offers protection for the assets of corporate directors and officers. This coverage is effective when a third party sues them with a case linked to their performance of duties. Some situations in which this type of insurance can help are:
Misappropriation of trade secrets
Breach of confidentiality
The situations above can be a difficult thing to deal with. This is why D&O liability insurance is important.
2. Corporate Liability
Corporate liability is also highly crucial because it protects the entire company from the possible commitment of wrongful acts or lack of action by the company. This kind of insurance is important and can provide financial coverage in very delicate situations like:
The accidental death of a board member
Because these situations are highly delicate, having financial coverage for it is ideal. Without insurance, it can cost a lot to cover any financial damages or loss brought about by these situations.
3. Criminal Liability
Criminal liability insurance can guard the company and its owners from any criminal acts committed by any of its employees. Accidents that occur at the workplace are also covered by this liability insurance. This type of insurance is not in place to cover the perpetrators.
4. Employment Practices Liability
Employment practices liability is a type of insurance that will protect the company from financial damages arising from employment-related issues. These can be things like sexual harassment, discrimination, defamation, etc. If any of these happen and become a lawsuit, the company can get financial aid from this kind of insurance.
5. Statutory Liability
This insurance covers fees or any fines incurred by a company by accidentally breaching a law imposed by the government. Usually, this insurance covers protection against the breach of the Occupational Health and Safety Act 2011 or some sort of licensing breach.
What Kind of Liability Insurance Should I Get for My Company?
When it comes to purchasing management liability insurance for your company, there are a lot of factors to consider. These factors include:
The amount of capital the company has
The size of the company
The number of current employees
The type of business the company is engaged in
The value of the company’s assets
The number of shareholders currently in the company
The company's financial status
The risk level of the company
These factors should make a great impact on your decision. Just make sure to do your research properly and understand what kind of policy you are getting.
Management liability insurance is important as it protects your company from possible lawsuits from employees, other companies, and even the government. It is a reliable way for your company to protect itself from these situations.
If you are seeking management liability insurance in Gold Coast, New Wave Insurance can help you find one. We will understand your needs and ensure that you get all of them. Find the right insurance by hiring us, New Wave Insurance!