When running a business, you often put your business in the care of executives such as directors, officers and other managers that will need to handle quite a bit in terms of company action and decision making. These people will have control over parts of your business that can directly affect others, including employees, stockholders, customers and other third parties. If something happens, whether through direct actions or simply poor luck, which could be blamed on one of these executive’s decisions, they can be held personally responsible. This leads to lawsuits, which result in legal fees that either have to come from the director or officer, or from the company itself (and if not immediately from the company, the costs are typically indemnified). However, searching for a management liability insurance specialist can help you get the coverage you need in order to avoid these financial losses.
What to Look For in Management Liability Policies
Typically, management insurance coverage is Directors and Officers (D&O) liability, perhaps as a part of professional liability. When comparing policies and locating a management liability insurance specialist, keep in mind a few different qualities you’ll likely want:
- Program flexibility for the policy to adjust to your industry and needs
- Coverage for individuals, the company itself and indemnifying
- All legal fees are included, such as attorney fees, fines, settlement, penalties, damages and punitive damages
- There is still coverage for innocent defendants in cases of crime