Management Liability Insurance
With an ever litigious appetite often fuelled by a compensation culture, any company could be the subject of claims made against your business’s directors and key employees (officers) for alleged wrongful acts. Even if you and your team are innocent of any wrong doing, action taken against you could still mean that you have to foot the bill to defend yourself and clear your name and reputation.
Management Liability insurance, commonly referred to as Directors' & Officers' Insurance, provides the defence and compensation costs for claims against directors for wrongful acts that may include breach of trust, breach of duty, neglect, error, misleading statements or wrongful trading.
Under the Companies Act upon formation of a company, directors and officers have specific duties, responsibilities and powers. If a director or officer of your company is found to have acted outside of their duties or responsibilities, then civil, criminal or regulatory proceedings can be brought against them. If companies do not have this cover in place, there is a greater risk of not being able to defend themselves against disqualification from holding the position of director, civil proceedings with legal costs and awards for damages as well as criminal prosecution which can lead to fines and possible imprisonment (corporate manslaughter for example).