Management Liability Insurance in The Chicagoland Area and Across The Midwest
Although your organization’s leaders and decision-makers are generally among its most trusted members, these parties may still make mistakes, misjudge situations or conduct themselves inappropriately. In these situations, the resulting financial and legal consequences can have significant ramifications for both them and your company. Fortunately, management liability insurance can provide financial security.
What Is Management Liability Insurance?
Management liability insurance may often not refer to a single type of coverage. Rather, this term generally entails several policies that can cover various potential risks and exposures related to your organization’s managers, supervisors, officers and other leaders.
What Does Management Liability Insurance Cover?
The exact capabilities of management liability insurance may vary depending on the components of your loss control portfolio and the details of each policy. Generally, an adequate management liability insurance portfolio may help with legal expenses and financial consequences if your company’s leaders are accused of being at fault for other parties’ losses or overseeing improper workplace practices.
Types of Management Liability Coverages
When assembling your business’s management liability insurance portfolio, consider the following types of coverage:
- Directors and officers liability insurance, also known as D&O insurance, can provide financial assistance if your leaders are personally sued for actions related to the company.
- Employment practices liability insurance, also known as EPLI, may financially protect your business from lawsuits filed by current, former or prospective employees alleging improper workplace conduct, such as discrimination, harassment or wrongful termination.
- Fiduciary liability insurance may help pay for losses arising from mismanagement of employee benefits, such as 401(k) plans and health insurance.
- Kidnap and ransom/extortion insurance may help pay for costs and losses resulting from your company’s leaders being kidnapped or extorted.
- Commercial crime insurance can offer financial aid following crimes committed by your business’s own employees, such as theft, forgery and fraud.
- Professional liability insurance, also known as errors and omissions insurance, may provide financial protection if other parties accuse your business or its leaders of providing services or products that were incorrect, negligent, misrepresented, late or otherwise inadequate.
Benefits of a Combined Policy
Management liability policies can offer a level of protection not available through individual coverage’s. The combined nature of the policies allow for fewer gaps and broader coverage definitions. Because smaller organizations statistically have fewer of these types of claims, it may also come at a reduced cost when compared with buying all of the included coverage’s individually. While the exposures will always be there, smaller businesses are unlikely to need every form of coverage every year. Combined policies share coverage between exposures to reduce premium costs.
Coverage Comparison is Essential
There is no single standard policy for management liability insurance, making coverage comparison essential. At Pitcher Insurance Agency, we have the resources and expertise to analyze your unique needs to help you choose the policy that best fits your business. Don’t just think you have the right coverage. Contact us today to be sure you’re operating with the protection you need.