Running a business carries a lot of risk, from making strategic choices to overseeing day-to-day operations. Whether they are defending against claims of mismanagement or covering financial losses resulting from a statutory penalty, businesses and their leaders need to be protected. This article provides a better understanding of what is management liability insurance, which is a set of policies that protect directors and officers (D&O), executives, and other high-level managers against various exposures.

Generally, management liability package policies include D&O coverage, employment practices liability insurance (EPLI), fiduciary liability insurance, and commercial crime (kidnap, ransom, and extortion) insurance. This bundled approach helps small businesses, private companies, and not-for-profit organizations secure comprehensive coverage with one policy rather than multiple standalone policies, and typically results in reduced premiums.

For higher-risk businesses, a more tailored suite of policies may be required to ensure that the most serious allegations are covered. This type of cover is usually more common for larger, publicly traded companies that have the resources to seek separate policies for each individual exposure.

Having the right management liability coverage in place gives business leaders peace of mind knowing they can make decisions and take actions without worrying about the potential impact on their personal assets. This confidence fosters a more effective leadership environment, allowing your business to focus on the things that matter most. Get a quote for a management liability policy in under 10 minutes.