Management Liability Insurance
Management Liability Insurance combines several types of policy. Coverage combines two or more of the following:
1. Directors & Officers Liability (D&O)
2. Professional Liability (Errors and Omissions Liability)
3. Fiduciary Liability
4. Crime Insurance Including Cyber/Technology Breaches
5. Employment Practices Liability Insurance
Combining coverage helps in situations where fault is hard to determine. For example, it’s sometimes impossible to determine if a claim results from professional advice, which is not covered by a D&O policy. But the claim could possibly result from the negligence of an officer, which is covered by a D&O policy. A management liability policy is able to cover both situations.
Most of the protections provided by a management liability policy cover regulatory actions and civil litigation. But it also covers other things, such as failure to supervise outside service providers, conflicts of interest issues, and allegations of unprofessional services.
The businesses most likely to need this type of coverage include: Investment funds, non-profit organizations, and corporations with private investors.