Oct 18, 2021
Why “Directors & Officers/Management Liability Insurance” Cover Is Necessary for Businesses
It’s easy to assume that it is entirely sufficient to have your business insured for property damage and public liability, but you should also ensure that your liability as a director or a manager is also insured. This is wholly covered by Directors & Officers (D&O) or Management Liability insurance. Directors and Managers run the risk of being charged huge sums in terms of personal legal costs for any perceived damages that might arise as a result of performance issues while carrying out their duties at work. D&O and Management Liability insurance will cover these personal legal costs.
What Is Directors & Officers (D&O) or Management Liability Insurance?
Directors & Officers (D&O) or Management Liability insurance is a policy that covers the personal legal costs of managers and senior staff against claims of wrongful deeds and errors, whether proven to be true or not, that may occur in the course of performing their responsibilities at work.
Business policies do not cover fraud; however, this can be covered under a D&O Management Liability policy. You might also be wondering about the difference between D&O Management liability policy and Professional Indemnity insurance. While Professional Indemnity Insurance covers financial losses to external customers that may arise as a result of following wrong professional advice, Management liability covers internal losses.
It should also be noted that fraud is not covered under business insurance policies, so it’s important to have this covered under a D&O or Management Liability policy. Business policies cover burglaries or theft due to a break-in only.
Who Is Eligible for Management Liability Insurance?
Directors and Senior staff are eligible for the Management Liability Insurance. However, sometimes injuries and fatalities might be caused by employees flaunting or missing the rules. In this case, directors and managers are responsible for damages caused.
How will your business benefit from D&O Management Liability insurance?
D&O Management Liability insurance protects you against any litigation that may arise from your employees, government regulators and shareholders. It covers breach of duty, defamation of reputation, fraud, harassment, unfair treatment or dismissal and health-related accidents. Ultimately this insurance will protect your business from financial losses.
How Can You Get D&O Management Liability Insurance?
This is the importance of an insurance specialist who has been extensively trained to provide professional advice on insurable risk. An insurance broker will give you all the necessary support to customize your D&O Management Liability insurance to suit your business model. You will be able to discuss all the available options for D&O management Liability insurance and make a good choice.
To save your business from past and future financial losses, talk to an insurance specialist today about getting D&O Management Liability insurance.
General Advice Warning
The information provided in this blog is to be regarded as general advice. We recommend that you consider the suitability of this information, in respect of your objectives, financial situation and needs before acting on it. You should obtain and consider relevant product disclosure statement(s) before making any decision to purchase this type of financial product.
