Management liability insurance comprises a suite of stand-alone insuring agreements rolled into a single policy.
The product was initially designed to protect small to medium enterprises, but has developed in scope of cover and indeed popularity over the past ten years or so. Management liability provides cover for legal costs and expenses, financial loss, compensatory damages, insurable fines and penalties arising from:
- managerial liability
- statutory liability
- employee theft and commercial crime
- employment practices liability
- internet liability
- defamation and advertising liability
- professional liability
Some policies may also pay for other first party claims, for example, the insured's cost of attendance at an inquiry or the insured's lost documents.
Our team has experience advising insurers on coverage for claims falling under all of these insuring agreements. Similarly, we act as defence counsel for civil claims, regulatory proceedings and inquiries on behalf of insured organisations, directors and officers under the respective insuring agreements.
In providing these services we draw upon our extensive experience acting under the stand-alone versions of these insuring agreements. However, we adapt our services, recognising that companies covered under a management liability policy typically require a different, perhaps more hands-on, approach to claims.
The vast majority of claims on management liability policies are for employment practices liability. Our approach to these claims is to have our insurance lawyers work closely with our dedicated employment lawyers, so that our clients get the benefit of coverage expertise and familiar reporting, along with the cost efficiencies of working with experts who know employment practices claims inside and out.