Management Liability/Directors’ and Officers’ Liability

Management Liability encompasses several areas of risk associated with the running of any type of business, from the smallest family owned company through to the biggest listed multinational, and includes the following:

  • Directors' & Officers' Liability (D&O) - which covers the personal liability of all those involved in decision-making at the business
  • Corporate Legal Liability - protects the company for claims made against it in respect of Corporate Manslaughter, breach of Data Protection Act, amongst others
  • Employment Practices Liability - protects the company for claims arising from employment disputes, i.e. unfair dismissal, sexual or racial discrimination etc.

We will tend to quote for all of the above covers under a single policy rather than just concentrating on D&O cover as some brokers will. Our preferred markets have been writing these covers for many years and our policies will be tailored to your specific requirements.

This cover can also be extended to cover Pension Fund Trustees Liability.

As with all other general insurances, there are some key considerations to be taken into account when buying this cover:

  • Does the policy contain any notable exclusions, such as a major shareholder exclusion? Does this significantly restrict the cover potentially provided?
  • Is the cover set up with potential international exposures in mind, if the policyholder has assets in the USA for example, and has significant trade links with North America that may make Extradition Defence Costs a particularly relevant cover?
  • When does the Employment Practices Liability cover activate? At the point of first notification of a potential issue, on receipt of a solicitor’s letter, or when notification of ACAS involvement or a tribunal is received?
  • What are the policy excesses? Do they render certain elements of the cover virtually unusable?
  • Does the policy provide any additional services? Legal advice, or Human Resources assistance?