Management Liability Coverage


A Management Liability Policy will typically include the following Coverages:

Directors and Officers Liability Coverage (D&O)
Protects Officers and Directors of a corporation against damages from claims (usually brought by stockholders) resulting from negligent or wrongful acts in the course of their duties.  It also covers the corporation (and even the officers and directors in some cases) for expenses incurred in defending lawsuits arising from alleged wrongful acts of officers or directors. These policies always require the insured to retain part of the risk.

Errors and Omissions Liability Coverage (E&O)
A form of Professional Liability Insurance that provides coverage for claims due to negligence in the performance of professional services in a profession not involved with the human body, such as lawyers, architects, engineers, or for mistakes made in a service business, such as insurance, real estate or financial services.

Employment Practices Liability Coverage (EPL)
This coverage provides for the legal costs to defend claims involving sexual harassment, wrongful termination and discrimination including legal liability for such acts. The coverage is known by various titles; Employment-related practices liability, management risk protection, employers E&O and Americans with Disabilities Act insurance are basically the same coverage.  Policies may cover employees as additional insureds.

Some Additional Coverages required by Fund Managers:

Fiduciary Liability Coverage
This provides protection for breaches of fiduciary duty by administrators of Employee Benefit Plans.  These policies usually include coverage for Errors & Omissions. Unlike the ERISA or fidelity bond, fiduciary liability coverage provides liability protection for the fiduciary.

General Liability Coverage
A form of insurance used to indemnify the business for third party liability claims due to negligence. Coverages can include premises and operations liability for onsite and jobsite accidents and products liability claims for products that injure third parties.  Most General Liability Policies Exclude coverage for claims arising from Errors & Omissions, Employment Practices, Fiduciary Responsibility and wrongful acts by Directors & Officers.

Property Coverage
Provides All Risk Coverage for damage from Fire, Smoke Water, Flood and Earthquake for your Offices and Computer Equipment.

Workers Compensation Insurance
Protection which provides benefits to employees for any injury or contracted disease arising out of and in the course of employment. All states have laws which require such protection for workers and prescribe the length and amount of such benefits provided.

Key Employee (key-man) Insurance
Insurance an employer buys on a key person within the organization to protect that employer from the financial impact that could result should that employee become ill, disabled, or die. This insurance may be life, health, or disability. Normally, the employee covered has special skills, training, management, or significant attributes that would cause the organization loss of income should that employee become unavailable and a replacement need to be hired or trained.

Group Health Insurance
Group insurance programs designed to offer affordable health coverage to a natural group, such as employees of an employer or members of an association and their families. A single contract is provided for the entire group which outlines the standard benefits, terms and provisions that apply to all members of the group. Individual certificates are usually issued to the members to verify that they are covered.

International Liability/Insurance
Business coverage for companies that conduct business outside the USA. The scope of coverages available may include but are not limited to: premises and product liability, automobile liability, workers compensation and employers liability, property including transit, kidnap and ransom, confiscation and civil war, crime, business interruption, difference in limits and conditions, and endemic disease.

Group Umbrella Policy
Group Personal Excess Liability Insurance is a comprehensive benefit for key personnel, managers, and employees. Group Personal Excess Liability provides up to $50,000,000 personal liability coverage for each employee in a defined group, and helps to assure that the most valued staff members' personal assets are protected. In addition, it awards a cost-competitive insurance product to valued employees. Group Personal Excess Liability Insurance is a true "group" policy; the insurance company will not individually underwrite or decline any individual in the designated group.