What Does Management Liability Insurance Cover Against?

Workers in an office.

If you work in management, the bad news is that you’re likely to be at much greater risk of having legal action taken against you. After all, the inherent nature of your role comes with its unique responsibilities: from managing staff and budgets to handling legal contracts. In short, the focus is on you should anything go wrong. It’s no wonder then that managers can sometimes find themselves in legal hot water.

Fortunately, management liability insurance exists to provide comprehensive protection against just such risks. But what does management liability insurance actually cover? Our commercial insurance experts here at Higos are explaining further to help you find the right policy for your needs.

Directors & Officers Insurance

Directors and Officers Insurance, often known more simply known as D&O insurance, is a crucial component of management liability coverage in the UK. As the name suggests, this provides financial protection for company directors, officers, and senior executives against personal liabilities they may incur while managing a company. Specifically, this coverage ensures that personal assets are shielded in case of legal disputes, investigations, or claims related to managerial decisions or alleged wrongdoing.

Corporate Liability

Corporate liability coverage addresses claims made against the company itself. This can encompass a wide range of scenarios, including breaches of duties, regulatory investigations, or shareholder actions. This component of management liability insurance helps to protect the company’s assets and reputation by covering legal expenses and potential financial settlements.

Employment Practice Liability

Disputes between employers and employees are on the rise in the UK, with Acas having seen a record 12% increase in their dispute resolution services between 1 April 2022 to 31 March 2023. Employment Practice Liability Insurance, or EPLI, protects your business in such situations. This aspect of commercial insurance coverage can protect your business against claims related to wrongful termination, discrimination, harassment, or other employment-related issues. With the increasing awareness of employee rights in the UK, EPLI is a vital part of any management liability policy.

Cyber Risks

As the digital age continues to advance, it brings new challenges and threats to businesses in the UK on a daily basis. Cyberattacks, data breaches, and privacy violations can all have severe financial and reputational consequences. Management liability insurance can include coverage for cyber risks, helping businesses respond to data breaches, legal claims, and the costs associated with managing a cyber incident.

Criminal Activity

No business is immune to the risk of internal fraud, employee theft, or other crimes. Management liability insurance can cover for financial losses resulting from these fraudulent activities by employees or third parties. This can help to mitigate the financial impact of theft, embezzlement, or other criminal acts that may occur within the company.

Management Liability Insurance from Higos

Management liability coverage is an essential tool for protecting businesses and their leaders from a wide range of risks in the UK. Whether it’s safeguarding individuals or mitigating against risks for the company as a whole, a policy can provide peace of mind and financial security.

That being said, the risks that each business will face can be unique and vary from industry to industry. That’s why, at Higos, our commercial insurance specialists will work with you to ensure you’re receiving a bespoke policy that’s been tailored to your specific needs. Whether a large corporation or SME, we’ll get to know the ins and outs of your business. So, if it’s claims against breach of contract, copyright infringement, or health and safety incidents, we’ve got you covered.

If you’re interested in our management liability insurance services or would like a no obligation quote, don’t hesitate to get in contact. Our team of friendly experts are always on hand to help and answer any questions. For management liability, it has to be Higos.

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Give us a call on 01458 270323 if you have any questions or click the 'request a callback' button.