Management Liability – Zander Insurance

Management liability insurance (also commonly referred to as “executive liability insurance”) protects both the company and its upper management. This is an especially important protection to have in place, as it serves a “catchall” for many specific situations that aren’t covered under your other business insurance policies, for both first- and third-party liability as it relates to the actions of an organization’s executives.

What are Some Common Lines of Management Liability Coverage?

• Employment Practices Liability Insurance (EPLI): protects the company from financial damage from lawsuits involving discrimination, wrongful termination, sexual harassment, breach of contract, emotional distress, and wage law violations.
• Directors and Officers Liability (D&O): most common for public companies, this line of coverage protects a company and its employees from financial damage due to stock price reductions and potential corresponding lawsuits
• Fiduciary Liability: relates primarily to mismanagement of a company’s employee benefits plans
• Commercial Crime: covers crimes such as employer or third-party theft, forgery, fraud, and embezzlement
• Kidnap and Ransom (K&R): a less common line of coverage, this protects a company and its employees who work in high-risk areas from facing ransom and extortion charges

Is Management Liability the Same as Directors and Officers Insurance?

Directors and officers insurance (D&O) policies protect the personal assets of those executives if they are sued due to actions they take within their director or officer position. This type of coverage is a specific line under the umbrella of management liability coverage and is just a small part of the protections you can put in place for your business with a comprehensive management liability insurance plan.

Does My Company Need Management Liability Insurance?

Even if you have a general liability policy, you likely need management liability insurance. Your other lines of coverage exclude protections relating to , sexual harassment, discrimination, and other common sources of financial strain for businesses. Even other commercial insurance lines, such as workers’ compensation, won’t cover these things, so it is best to keep your employees and your organization financially secure by insuring your executives.

Ready to Move Forward?

You can also read information about cyber liability coverage, workers compensation, and business identity theft protection. Have questions about what lines of coverage you may need or curious about how much this protection may cost? Give us a call at 1-800-356-4282 to get more information and a free quote.