Management Liability Overview
Management liability insurance combines the strength of several essential coverages into an all-in-one package. Explore the coverages below to see how they can work for your business.
Directors and Officers (D&O) Liability
Directors and officers face difficult decisions every day. The right decisions can boost your business to new heights, while others can open the door to lawsuits by employees, shareholders, or anyone else with an interest in the business.
Defending these claims can cost thousands or more and jeopardize the reputation you’ve worked so hard to build.
Directors and officers liability protects the directors and officers of your business from losses arising from actions connected to their positions. Typical claims may relate to:
- Allegations of mismanagement.
- Breach of fiduciary duty or loyalty.
- Release of non-public information.
- Conflicts of interest.
Employment Practices Liability (EPL)
Your employees can be one of your greatest assets. Unfortunately, they can also be one of your greatest risks — especially in an age when employment-related claims and lawsuits are on the rise. As a business owner, you don't even need to be in the wrong to be sued.
With employment practices insurance coverage, your business is protected against claims which may include allegations of:
- Harassment (sexual or otherwise)
- Failure to provide equal opportunity of employment
- Wrongful termination
- Failure to employ or promote
- Negligent evaluation
- Libel, slander, or humiliation
- Infliction of emotional distress
- Wrongful failure to provide or enforce corporate policies
- Violation of an employee’s civil rights
Offering top-notch employee benefits can give your business an edge when it comes to attracting and retaining quality employees. But did you know anyone who manages these plans on behalf of your employees can be held personally responsible if they fail to meet the Employee Retirement Income Security Act’s (ERISA) standards and legal guidelines?
Fiduciary liability insurance protects individuals or entities for claims that allege they’ve violated their responsibilities under ERISA. Examples include:
- Making misleading statements regarding investment options.
- Failing to educate participants about risks involved with investments.
- Failure to monitor fees and performance of outsourced plans.
- Discrimination in converting plans.
- Mismanagement as a result of merger or acquisition.
- Miscalculation of benefits in early retirement offerings.
Crime insurance is often an overlooked necessity, leaving your business vulnerable. Fraud, dishonesty or theft can happen in any organization, regardless of size, at any time.
Organizations lose 5-7% of their annual revenues due to fraud. Whether the perpetrator is an employee, consultant, intern, or someone you don’t even know, you can feel good knowing this coverage can help minimize risk and protect your assets.