\t\t\t\tThe word \u201cliability\u201d seems to be in constant circulation when talking about business insurance and charity insurance. You need to cover your responsibilities for your employees, members of the public, the products you sell or distribute, and your actions as a company or even as a charity. That\u2019s a lot of liabilities to consider.<\/p>\n
It is the third that we\u2019re going to be focusing on \u2013 your actions as a company \u2013 as this is where Management Liability comes into play.<\/p>\n
As a business, you might already have your Public, Employers\u2019 and Product Liability in place. Management Liability covers key individuals as well as the entity of a business, for a whole host of issues surrounding decisions carried out, mistakes made, and wrongful activities that are unfolding.<\/p>\n
Because these areas can be so complex, and the legislations around them very specific, a Management Liability policy tends to be split into three levels of cover, Directors and Officers Insurance, Employment Practices Liability and Corporate Legal Liability. Let\u2019s take a quick look at what each of these entails:<\/p>\n
Directors, business owners and senior management could take decisions, or make errors or omissions that land them in hot water legally. Accusations of alleged wrongdoings can come from many different sources, including other directors and shareholders, and it can be the individual who is personally held accountable. Directors and Officers Insurance protects them from any large defence or compensation costs, fines or penalties, providing the allegation doesn\u2019t relate to any intentional breaches, such as fraud.\u00a0<\/strong><\/p>\n If there is a claim for fraud, and the company comes under fire for the wrongdoings of an employee, then Corporate Legal Liability will cover them for any subsequent legal action. It also protects for other violations, such as water contamination, passing off and trespassing, if, for example, a company has been laying pipes on someone else\u2019s property.<\/p>\n So complex are the legislations around employment law, that dedicated insurance can certainly show its worth. Employment Practices Liability covers unfair dismissal, sexual harassment, and discrimination among other employment issues. With claims of unfair dismissal so common, it\u2019s not a cover option to be missed off the checklist, as it could save your business from large costs in the longer term.<\/p>\n Hopefully this makes Management Liability Insurance a little bit clearer, but the team at Edwards Insurance<\/a>\u00a0would be very happy to inform you further.<\/p>\nCorporate Legal Liability \u2013 The Company
\n<\/strong><\/h2>\n\u00a0<\/strong>Employment Practices Liability \u2013 The Employee
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