Management liability is made up of various insurance covers which are primarily aimed at protecting Directors, Partners, Principals and Members but also extends to include cover for your managers acting / not acting under your instruction. This also covers regulatory defence costs in relation to your duties as Compliance Officer for Finance and Administration (COFA) and Compliance Officer for Legal Practice (COLP)
These covers include the following:
- Directors & Officers Liability (D&O)
Designed to cover the personal liability of you and your managers for claims relating to allegations of wrongful acts or omissions. Claims can originate from a variety of sources including shareholders, other stakeholders, suppliers, creditors, employees and regulators. D&O liability insurance can cover the cost of defending an allegation against you including legal representation at any official investigation and any awards or settlements which otherwise could find your personal assets at risk. The policy does not provide cover for criminal fines or penalties.
- Corporate Liability
Designed to protect your practice against claims arising from the management of your business, including allegations of breach of regulatory authorities, breach of data protection, Health & Safety, Trading Standards, etc. Similar to the D&O policy, this is to cover the practice itself rather than the individual director / manager and can include all staff.
- Crime (Fidelity)
Provides cover for fraudulent or dishonest acts carried out by employees, third parties, temporary or seasonal staff, contractors and outsourcing operations. Unfortunately such dishonesty is becoming more and more prevalent not only through theft but also through computer fraud, forgery, expenses claims, counterfeiting, credit card fraud and other criminal acts. As most property insurance policies do not cover crime related losses, Crime (fidelity) insurance provides you with cover, which if left unchecked can jeopardise your practice
- Employment Practice Liability
Provides cover in the event of an employee bringing an action against your practice for allegations of unfair dismissal, harassment, discrimination or any other reason. This policy will provide legal advice and defence costs via a specialist employment legal representative to guide you through the process and ultimately at court. It does not provide cover for criminal fines or penalties.
- Pension Trustee Liability
Provides cover where a claim is made against you, as executor / director of a pension fund, where it is alleged that you are responsible for a pension’s potential shortfall or where a member of the scheme fails to receive the pension they were expecting. The obligations placed upon an executor / director are increasingly demanding and include being familiar with deeds, statements of investment principles, record keeping, data protection and other documentation. This responsibility, together with the increasingly litigious society, can leave you open to allegations of negligence for which you may be personally liable.
For further information, please contact us directly at Solicitorassist when we will happily discuss your individual needs.