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Do You Have Management Liability Insurance?

Do You Have Management Liability Insurance?

Hayes Brokers believes that regular insurance portfolio reviews are important for businesses. Besides cyber liability insurance, the most often unpurchased coverage for business owners is Management Liability insurance. If you don’t currently have these policies or have never been offered this coverage in the past, it is time to talk to your broker. So what is Management Liability insurance? The Components of Management Liability Insurance Management Liability coverage is actually a combination of coverage lines or policies designed to protect business owners, management teams and boards of directors. These entities can be vulnerable to claims no matter how large or small the company is, and whether or not it is private, non-profit or publicly held. These policies typically include: Directors & Officers Liability (D&O). Whether or not you have an official board of directors, there are one or more persons who make decisions for your company. Directors and officers may be exposed to costly litigation brought against them and the company due to financial losses brought on by the decisions of this board or the individuals. This coverage not only protects the assets of the company, but also the personal assets of the directors and officers. Examples of D&O claims include conflict of interest, violation of articles of incorporation and/or bylaws of the organization, transactions with companies in which the directors or officers have a personal interest or any other dealings that cause financial losses to the company or shareholders. Employment Practices Liability (EPLI). EPLI is valuable coverage that provides for defense costs and damages resulting from alleged or actual employment-related practices for things such as wrongful termination, failure...