Purpose

The exposures associated with managing a business are far and wide. Whilst companies tend to insure the tangible exposures of property damage, business interruption and bodily injury, they often completely overlook "management risk", thus exposing their company and its directors to fund the defence of personal and corporate actions from numerous stakeholders including Shareholders, Employees, Competitors, Creditors, Regulators, Customers, or Liquidators and Administrators.

Whether you are a director of a private company or a publicly listed company, Directors and Officers have the same governance & regulatory exposures. In the current economic environment, not only do companies and their directors face increasing regulatory surveillance of their business activities, but the risk of employee claims such as unfair dismissal is heightened.

Although you may consider that an allegation against the company or its directors is completely baseless or without merit, without insurance you leave yourself exposed to expensive and time consuming litigation to successfully defend any allegation.

Management Liability Insurance covers both the company and its directors in this regard. The key elements to the cover are as follows: