For businesses of all sizes and industries, there are a number of risks that can find their way into everyday operations. From claims alleging employee discrimination to mismanagement of benefits plans, the potential for lawsuits and financial pain can seem never ending.
For companies looking to protect their reputation and work out issues with their employees in-house, investing in management liability insurance can be a solution. Business management insurance combines coverages that protect businesses from a variety of risks that may come up when operating on any given day. This customized package of business management insurance coverage is aimed at protecting directors, officers, managers, board members, and administrators from potentially major lawsuits.
Want a better look at how business management insurance can protect a company? Read on for a look at Management Liability Insurance 101.
What does a management liability policy cover?
Coverage can vary by insurer, but in most cases, business management insurance offers these kinds of coverages:
- Directors and Officers: D&O liability insurance provides protection for the personal liability of directors and officers of a company while performing their roles. This insurance can protect them if they are accused of management errors or improper conduct. This coverage option has seen an uptick in attention in recent years with the onset of #MeToo. In fact, in a recent study, more than one-third of US workers feel they have experienced harassment in the workplace, with sexual harassment topping the list.
- Employment Practices Liability Insurance: Also known as EPLI, this coverage provides financial protection for a business against lawsuits by employees accusing it of wrongful treatment. This can be in the form of discrimination, harassment, or other employment-related problems.
- Fiduciary Liability Insurance: This coverage is centered around protecting a business and employer assets against claims of mismanagement of a company’s benefit plans. Fiduciaries are expected to act in the interest of plan participants and can be held legally liable for any mismanagement of employee benefit plans.
- Kidnap & Ransom Insurance: This specialized insurance protects a business from financial losses as a result of kidnapping, ransom, or extortion demands. It is particularly important for companies that frequently send employees out on international business trips, especially to high-risk areas.
Is management liability insurance necessary?
Management liability insurance covers common risks as well as specialized risks and can fit any operations’ reputation and financial assets. For any business, having coverage for some or all of these common exposures is critically important to their success.
Business management insurance can offer higher levels of protection than offered through standalone policies. Because of its combination and personalization of coverages, management liability insurance can better close the gaps between policies and provide broader coverage.
About Axis Insurance
At Axis Insurance Services, we aim to help our customers identify their exposures and protect themselves. Founded in 1999, we offer insurance programs to a wide variety of professionals and industries including attorneys, real estate, healthcare, architects, and more, and also have a wholesale division. We pride ourselves on offering flexible insurance coverage tailored specifically to each customer’s needs. To learn more about our solutions, contact us at (877) 787-5258 to speak with one of our professionals.