What is Management Liability Insurance?
Management Liability Insurance provides coverage to you and your business (or non-profit), which is not typically available in your Business Owners Policy (BOP). Your insurance coverage, in this case, falls into three categories:
- Employment Practices Liability provides coverage for claims brought by employees, such as wrongful termination, harassment, sexual harassment, breach of employment contracts, and discrimination.
- Directors & Officers Coverage Insurance provides coverage if a party brings legal action against you, your company, the directors, officers, or the management of your company. Common claims covered by D&O include breach of fiduciary duties and misstatements or misleading statements during the course of business.
- Fiduciary Liability Insurance is designed to protect you and your company from claims alleging violations of the responsibilities and administration of your benefit, pension, profit-sharing, welfare, health, life, and disability plans.
Selective and your independent agent can also tailor your policy to include certain additional coverages that meet your unique business needs.
According to TrustedChoice.com, the cost of settling an Employment Practices Liability claim [Management Liability is nested within EPLI] out of court averages $75,000, and the average jury award is around $217,000 for those that go to court and lose.
Who Needs Management Liability Insurance?
An unforeseen disruption can wreak havoc for any sized business. Small businesses need coverages offered under Management Liability insurance to protect their financial stability and provide the necessary expertise and claims handling in the event a situation arises. Dealing with a claim on your own takes time and money away from operating your business.
Reduce Your Risks with Value-Added HR Services for Business Owners
Being proactive in managing your risk is always the best first line of defense for claim prevention. When you insure your unique business with Employment Practices Liability Insurance (under Selective’s Management Liability Insurance), you get unlimited access to Selective HR EssentialsTM, including:
- Off-the-shelf employee handbooks
- Manager and employee training
- HR coaching on employment-related situations
- Guidance on developing policies and procedures
- Additional features and materials available to you via SelectiveHREssentials.com
Protect Your Business with Management Liability Insurance
You and your fellow leaders play a critical role in your business. Talk to your independent agent about the risks of a lawsuit or other legal claim against you—and how Management Liability Insurance can protect your company.