Companies and their directors and officers are subject to an increasing burden of regulation and legislation. Employees, investors and shareholders have an increasing awareness of their rights and an increasing ability to access tribunals or mount class actions in more and more jurisdictions. Management Liability (“ML”) is a policy that groups together a number of liability covers to indemnify an insured firm’s management team, and the company itself, against claims they may face from their management activities.
ML packages can be tailored for the elements of cover the company requires; the core modules include:
Directors and Officers Liability – D&O (or Trustees Liability Cover)
A D&O policy will indemnify the directors and officers of a company (or the trustees of a charity or association) against claims against them arising from their running of that company (or charity or association). All current, future and past directors and officers of a company and its subsidiaries are covered under a D&O policy. It extends to cover the costs of defending claims as well as any awards or settlements made.
Employment Practices Liability
This section provides coverage for disputes from the employment practices of the Entity (that is, the company, organisation, association, or group), which can include harassment, wrongful dismissal, redundancy disputes and discrimination from other employees or third parties. It extends to cover the costs of defending claims as well as any awards or settlements made.
Corporate Legal Liability
The D&O section of cover would trigger when individual directors or officers are named in a claim. This module extends the cover to claims made against the Entity itself. A claim can be brought by a range of claimants, including regulatory bodies, shareholders or third parties. The cover would respond to claims for official investigations or disciplinary hearings and include the costs of legal representation and awards made. Fines and penalties are not covered, as these are not insurable by law.
MGB arranges ML for a wide variety of companies, including: charities; insurance brokers; construction companies; financial institutions; sporting clubs and associations. We regularly deal with a large number of insurers for this specialist class and are well-placed to assist you.
For more information or to talk about your specific needs, please call us using the details on the right.