Management Liability Insurance
Solutions designed to protect the leaders and management members of public, private, and non-profit organizations
Management liability is more than protecting the managing members from potential lawsuits, it encompasses protecting their assets as well. Basic liability insurance doesn’t cover managing members when the business is at fault. Lawyers will follow the money to ensure their clients get paid which often means going after the board members’ personal assets. Don’t let that happen to you.
What is Management Liability Insurance?
=Management liability insurance is exactly what it says - insurance for the managers, directors, and leaders of the business. But it is much more than that. Most people think of large, nationally publicized class action lawsuits when it comes to this type of coverage, but managing members of those national and global companies are most certainly covered by their insurance policies. We focus on coverage for businesses that aren’t aware that they even need it. This insurance is not exclusive to damages from mismanagement of the daily operations such as producing faulty products. The following are some examples of what your policy could include depending on your needs:
Directors and Officers Liability - Quite possibly the most important part of your insurance policies for any business with a management team. This protects the leaders against losses and provides coverages for defense costs
Fiduciary Liability - Covers any issues that could arise from mismanaging employee benefits
Employment Practices - Claims from employees who believe that management has violated their rights
Crime Insurance - Also known as Fidelity Insurance, this covers the owners when it comes to most types of theft including but not limited to employee dishonesty, forgery, and burglaries
The BB Insurance Approach to Management Liability
Not all businesses require management liability insurance, so our first step is to determine if you need coverage at all. We’re not in the business of selling you products you don’t need, so we will take the time to understand your organization, the structure, and any policies you currently have in place. Once we determine that management liability insurance is what you need, we’ll work with national insurance agencies to broker you the best deal on your policy. And as your business grows and your needs change, we will be there with you the entire way.
BB Insurance maintains outstanding underwriting relationships with the entire management liability insurance market. We firmly believe that a management liability client extends beyond the company to the individuals serving on its board and its management team. With decades of experience, BB Insurance is a leader in Management Liability insurance coverage both in terms of risk assessment and program design. Our expertise ranges from multinational public companies to emerging innovation companies, along with the venture capital firms that invest in them. Unanticipated and complex litigation can derail any company. Our goal is to assist our clients navigate through turbulent times with the combination of best advice and insurance coverage available. We have worked with our clients through the most complicated claims scenarios, including, but not limited to, securities litigation, international bankruptcies, employment related actions, dilution issues and challenged exits. Through all of this, a common theme in our client feedback is their overall satisfaction with our expertise leading to favorable outcomes in complicated litigation.
Who Needs Management Liability Insurance?
Most companies and businesses who have a management team, board of directors, or any officers will need this type of coverage. What is covered and how may vary, but at a high level, this is something those types of companies will need. In addition to the leaders, whoever is responsible for selecting health insurance plans, retirement plans, and other employee benefits will need to be covered. Most policies will pay for the defense costs that come with lawsuits from disgruntled employees. The best way to know if you need coverage is the give us a call
FAQ
What are the benefits of management liability insurance?
Claims are often unexpected and can come at any time. Unlike most risks that are physical in nature such as damages to property or workplace injuries, this covers the more “invisible” threats to your business such as theft and harassment lawsuits.
What are some common areas that policies cover?
In addition to disgruntled employees and damages from theft, your coverage may protect you against dishonest acts by your management team, costs with tax and financial audits, and statutory fines and penalties.
How do I know if I need this type of insurance?
Give us a call! There isn’t a blanket answer for this question because there are many factors to consider when determining what policies your business may need. The only way to ensure your proper coverage is to have a conversation with our team.
Can’t my lawyer protect me from these types of risks?
While your lawyer may help to get you out of trouble once you’re in the thick of it, our policies are there to protect you before trouble finds you. Your policy may help to keep you out of court and to avoid having to pay your lawyer their hourly rate to fix something that could have been avoided altogether.