Management Liability Insurance – (protects against allegations of financial injury)
Management Liability insurance is a combination of Directors & Officers Liability, Employment Practices liability and Fiduciary Liability insurance.
This relatively new policy delivers a wide range of protection to agency owners and principals. Management Liability …
The greatest benefit of a Management Liability policy is Employment Practices Liability.
While sexual harassment claims get the “big press,” the big claim settlements are for wrongful termination and discrimination. The insurance companies who write this type of coverage provide training to prevent claims and they can provide sample communications/policies for agencies to use.
Claim examples are in the news every day. Terminations of key executives and allegations against employers of failure to promote or hire and claims of sexual misconduct by employees at all levels are common.
To get a policy or a proposal, the process starts with an application. There are questions about employee turnover, whether the agency states all employment is “at will”, it asks for a copy of the agency Human Resources manual, etc.
Simply completing the application is a procedure all agencies should do – whether you buy the insurance or not.
The application process will give you an indication of your risk – “if you would not give you the insurance”, you will have a good roadmap of what you need to do to lessen your exposure to claims.
Any risk manager will recommend investigating the Management Liability policy. – there is a lot of ‘sleep insurance” in a $1,000,000 policy!