Leading a business comes with daily decisions, from hiring and terminations to financial oversight and policy changes. With each of those decisions comes potential legal and financial exposure. That’s why having management liability insurance in place is essential for protecting both your leadership team and your business.
This coverage is designed to protect private companies, nonprofits, and small publicly traded businesses from claims related to executive decisions, employment practices, and more.
What’s Included in a Management Liability Package?
- Directors & Officers (D&O) Insurance
Covers legal defense costs and damages related to claims against your leadership team. Common scenarios include misuse of funds, reporting errors, or inaccurate disclosures. D&O insurance can also help attract board members who expect personal asset protection. - Employment Practices Liability Insurance (EPLI)
Covers legal expenses tied to claims of discrimination, harassment, wrongful termination, or other employment-related allegations. This protection is important for companies of all sizes, even those with a small, close-knit team. - Fiduciary Liability Insurance
Protects against lawsuits involving the mismanagement of employee benefit plans, such as 401(k)s or health insurance. It helps cover legal costs and make up for plan losses when errors or omissions occur. - Crime Insurance
Even with internal controls in place, businesses are vulnerable to fraud, embezzlement, and theft by employees. Crime insurance helps recover losses if internal wrongdoing occurs.
Why It Matters
Without management liability coverage, your company (and its leadership) may be on the hook for costly claims. Legal defense alone can reach six figures, and judgments or settlements can be even more. This type of insurance fills gaps left by general liability or professional liability policies.
Adding management liability to your portfolio is a smart way to protect your leadership team, your balance sheet, and your company’s future. To explore your options, contact McHugh Insurance Group.