Management Liability Package
Management Liability insurance is a way to package certain individual liability coverage forms, which covers the liabilities of a corporation itself as well as the personal liabilities for the officers’ & directors and employees. It is generally made up of one or more of the following types of liabilities.
Limits of liability generally apply as shared or separate limits for each coverage. Management Liability often includes Directors’ & Officers’ Liability, Employment Practices Liability, Fiduciary Liability, Professional Liability, Cyber/Privacy Coverage and Crime Coverage.
Coverage is available for Non-Profits and Closed (Private) Corporations, as well as Limited Liability Company. Normally, Public Corporations will purchase individual coverage forms, versus sharing limits.
Directors’ and Officers‘ Liability Insurance (D&O) is liability insurance that helps cover defense costs and damages arising out of wrongful act allegations and lawsuits brought against the officers’ and directors’ of a company..
It has become closely associated with broader management liability insurance, which covers liabilities of the corporation itself as well as the personal liabilities for the directors and officers of the corporation.
Employment Practices Liability (EPL) is an area of United States law that deals with wrongful termination, sexual harassment, discrimination, invasion of privacy, false imprisonment, breach of contract, emotional distress, and wage and hour law violations.
Most commonly, employment practices liability deals with laws and protections brought under various Regulations, like Title VII of the Civil Rights Act of 1964, the ADA (Americans with Disabilities Act) of 1990, the Civil Rights Act of 1991, ADEA (Age Discrimination in Employment Act) of 1967, and Family and Medical Leave Act (FMLA). The Equal Employment Opportunity Commission (EEOC) interprets and enforces these laws.
The EEOC recognizes eleven types of employment practices discrimination: age, disability, equal pay/compensation, genetic information, national origin, pregnancy, race/color, religion, retaliation, sex, and sexual harassment.
Fiduciary Liability Insurance is a form of liability insurance which helps protect officers of an organization and others persons acting in some capacity relating to an employer’s pension plan, savings, profit sharing, employee benefit, and health and welfare plans arising from a breach of these fiduciary duties.
Professional Liability insurance (PLI), commonly known as errors & omissions (E&O) or malpractice is a form of liability insurance which helps protect businesses and individuals from claims arising from professional advice and service, errors and omissions, inadequate work or negligent acts.
The coverage focuses on alleged failure to perform on the part of, financial loss caused by, and error or omission in the service or product sold by the policyholder. These are causes for legal action that would not be covered by a general liability insurance policy. Professional liability insurance may take on different forms and names depending on the profession and is often a contractual requirement.
Coverage does not include criminal prosecution Professional liability insurance is required by law in some areas for certain kinds of professional practice.