In a nutshell, management liability insurance offers financial protection against liability for mismanagement (real or alleged) in a business.
Some examples of management liability claims include:
- Employment-related – harassment, bullying, discrimination, unfair dismissal.
- Crime-related – thefts by employees or contractors, and inventory theft.
- Directors and Officers – fraud, unfair competition, insolvent trading, and breach of duties or intellectual property rights.
- Others – shareholder disputes and tax investigation.
As an SME owner, manager or director, you are likely to come across a wide range of scenarios that have the potential to result in claims being made against you. Management liability insurance is designed to financially protect not only your personal wealth, but the company as well.
Without this cover in place, you could be at risk of loss if you are sued over allegations of wrongdoing in running your business. It’s also a good idea to regularly review your risk profile and renew your cover accordingly to ensure you are fully protected.