Why do clients need Management Liability cover?
Some businesses may not feel the need for management liability cover on top of the insurance they already have. Here are a few reasons why they may need this cover:
- Professional liability cover might not include personal liability for those with management responsibility
- Claims can come from shareholders, regulators, service providers, donors, beneficiaries and employees
- Responsibility doesn’t end at retirement - management liability can offer run-off cover that continues to apply after your client retires
- Directors aren’t covered by a company's limited status – it gives financial protection to shareholders only
- Claims aren’t restricted to public companies - customers, competitors, third parties or shareholders can bring a claim against a director
- A director’s personal assets can be at risk even if a wrongful act is only alleged, as there will be legal fees regardless of the outcome of the accusation
- A director could be held liable if a company fails and investors or shareholders can prove a director acted in a way that was for their personal benefit, not the company’s
- A director may be held responsible for cyber attacks or data breaches by investors or shareholders who may feel the security measures in place weren't robust enough
- Directors who either permit workplace abuse (affecting mental and physical health), do nothing to address it or actively promote it, could be personally liable for related claims
- Poor records on corporate social responsibility or misleading information about “green” credentials could significantly impact a company’s reputation and its success – potentially leading to action against directors
Why choose Aviva's Management Liability cover?
There are three sections to this suite of covers: Directors & Officers Liability (core cover), Employment Practices Liability (optional) and Corporate Legal Liability (optional). Each section has its own role to play in helping to protect the assets of the individual directors, and of the company itself, from the costs of lawsuits and legal actions.
Directors and Officers Liability insurance is designed to offer legal protection for directors and officers for wrongful acts which may arise, or are alleged to have been committed, as a result of decisions and actions taken within the scope of their duties.
Cover:
- Broad definition of ‘insured person’, including employees acting in a managerial capacity
- Reimbursement to the company if it pays out to protect the director or officer
- Legal representation expenses (up to the policy limit)
- Cover automatically extends to newly established or acquired subsidiary companies (subject to the size of the new company)
- Legal costs, expenses and any civil damages awarded against the director or officer
- Derivative investigation costs
- Mitigation, crisis event and reputation protection costs
- Bail bond costs
- Defence costs for extradition, deportation and asset protection
- Personal tax liability
- Civil fines and penalties
- Retired directors and officers have unlimited reporting period for Wrongful Acts, where cover is neither renewed nor replaced with similar cover
Corporate Legal Liability
Corporate Legal Liability insurance helps to protect the company against the financial consequences of a wide range of claims made against it. Cover includes the cost of defence and in some cases the amount of awards and damages, as a result of claims and prosecutions made against the company.
Cover:
- Cover for defence costs and in some cases awards and damages
- Kidnap event crisis expenses
- Breach of contract defence costs
- Copyright infringement defence costs
- Corporate manslaughter defence costs
- Pollution defence costs
- Health and safety investigation costs
- Crisis event and reputation protection costs
- Regulatory mitigation costs
Employment Practices Liability
Employment Practices Liability insurance helps to protect the company against financial loss from claims made by employees for a wide range of employment practice violations. These include unfair dismissal or discrimination on grounds of sex, race, disability, religion, belief or sexual orientation. The policy covers the cost of defence, awards, settlements and legal representation.
Cover:
- Wide definition of employment Wrongful Act
- Crisis event and reputation protection costs
- Disability obligation defence costs
- Employment payments defence costs
- Employee reinstatement defence costs
- Injunctive and non-monetary relief defence costs
- Training and development post-judgement costs
Restrictions, exclusions and limitations apply. Please see policy documents for more details.
Management Liability Playbook
For more information on our range of Management Liability products and limit, please take a look at our playbook.
Get a quote
You can get a quote for Management Liability and buy online through Fast Trade.
Alternatively, for those clients who don't meet Fast Trade eligibility or have more complex needs, please contact your local trading office.
Claims
Our dedicated claims service is there whenever your client needs us – they can call our 24/7 claims line or email us anytime.
Your client will be allocated a claims handler, who will support them throughout the entire process, but they’ll also have access to our panel of solicitors working in litigation and claims investigation.
Our defence excellence team will be on hand to help protect your clients against fraudulent claims and also give advice on best practice procedures and legislation that can help companies enhance their risk management strategies.
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