It’s definitely common practice nowadays to make sure your goods, the public and your employees are protected but what about you and your fellow directors/shareholders/officers? What happens if an employee raises a claim against you following, for example, a breach of trust? What if a fellow shareholder tries claiming for a drop-in share profit?
Management Liability is the answer to your worries. This insurance is a ‘package’ type insurance and would protect you by covering any legal costs to defend any claims (actual or alleged) and will pay out costs in the event of an unsuccessful defence. The three types of cover available are Directors & Officers Liability, Employment Practices Liability and Corporate Legal Liability.
As the head of a company, a lot of responsibility falls to you, and you could find yourself in deep water if others don’t agree with your style of leadership/management. You don’t even need to be actively involved in the incident; if it’s found that you ‘should have known’ you could still be held liable for negligence. It could put your livelihood at risk and if you are targeted by legal action, costs may be personally acquired from your personal finances!
Claims could include claims of breach, of regulation, duty, wrongful trading, slander, libel, discrimination, unfair dismissal etc. Anything relating to management of the company.