Management liability insurance

Management liability insurance can allow your most senior managers to confidently back the decisions they make for your business. Whether they’ve made an error or omission, or committed a breach of duty or wrongful act, this type of liability cover is essential to consider to protect your business, but also the individual executives themselves and, importantly, your clients.

No. Management liability covers the management of a business. Whereas public liability helps protect a business from the costs incurred from third-party injury and property damage claims.

Even if you’re not at fault, the legal costs to defend yourself or your business can be significant – and even put your personal assets at stake if you’re not insured.

Management liability covers the management of a business. Professional indemnity, on the other hand, covers the services and advice offered by a business and its employees.

Management liability insurance provides cover for private companies, while association liability is designed for not-for-profit and charitable associations.

An association liability policy may also include professional indemnity, but a management liability policy does not.

Management liability comes with a ‘condensed’ version of the directors and officers liability (D&O) policy that is designed for SMEs. A management liability policy also includes other covers, including employment practices liability, General, Statutory, Employers liability Crime, Consequential losses making it simpler and more cost-effective to protect your business from various risks.

The standalone liability insurance for directors and officers is designed for larger organisations and has much broader cover. But it does not come with any other insurance covers – only D&O.

No, while there may be some overlap between the two types of insurance, they are generally distinct and cover different types of risks.

Management liability insurance and professional indemnity insurance are not the same thing. While both types of insurance are designed to help protect businesses from financial loss resulting from lawsuits, they cover different types of risks.

Management liability coverage also typically provides protection for acts committed by a company's directors, officers, and other key personnel. Whereas, professional indemnity insurance, is designed to protect businesses from claims related to errors and omissions in the services they provide – which can be provided by any business employee.

The cost of your management liability insurance will depend on several factors, including your business size, revenue and risk exposures.

When requesting a quote, be sure to fill in the form values as accurately as possible. This helps us arrange the right premium and cover for your business. Along with the completed proposal form, a copy of your latest audited/reviewed financial report may be required.

For a clearer picture, you can also request a call back to speak to a Marsh advisor.

Inclusions and coverage limits may vary between different insurers and policies.

Typical exclusions may include:

• Fraud or dishonesty 

• Pending or prior claims and litigation 

• Intentional and deliberate acts

• Bodily injury and property damage

• Asbestos-related liabilities.

To find out more about the exclusions, deductibles, excesses and limits that may apply to your specific policy, please speak to your Marsh advisor.

Even when your business has ceased trading or is being acquired, it continues to be liable for up to six years (in line with the statute of limitations).

A run-off period refers to a policy provision that protects the insured for a certain period of time, even after they’ve closed the business.