Being a company director or a member of the board comes with perks, but less is often said about the unglamorous side of the role – including the very real personal risks that comes with the territory.
Management liability insurance in its simplest form exists to safeguard your organisation’s management team. It is put in place to protect against personal or company loss should a claim be bought against an individual for the decisions or actions they make of behalf of the company. Depending on your business this might include company directors, officers, board members and committee members and some senior managers.
5 key reasons for management liability cover:
- Investigations by regulators are becoming more common.
With regulatory bodies becoming increasingly stringent, investigations are on the rise with the Health & Safety Executive being one of the primary drivers of claims in the current UK business climate.
- Directors’ personal assets are at risk
If a director is accused of being in breach of their duties, they are personally liable to defend their claim putting personal assets at risk.
- Helps attract and retain talent
Considering the current employment landscape, businesses need to do all they can to attract and retain desirable talent. Not having sufficient D&O protection in place to protect an individual’s personal assets is likely to discourage desirable candidates.
- D&O claims are not covered under any other liability policy and can be costly!
A common misconception is that these sorts of allegations are covered under other insurance policies such as Professional Indemnity.
- Provides peace of mind to support productivity
Anxiety and stress decrease productivity, so having the appropriate covers in place helps your management teams to focus on their duties without the worry of personal exposures.
(Source – Allianz)
To understand more about management liability, connect with one of our advisers today by phone 03300 940177, or by email firstname.lastname@example.org. If you already have a dedicated Partners& adviser, feel free to reach out directly and they will be more than happy to support you with any questions you might have.