Management liability is a concept that business owners must understand to succeed and thrive. Investing in management and professional liability insurance is essential for protecting yourself and the company’s interests. Many business owners lack knowledge about proper insurance coverage for the company and its business practices. Company directors, board members, officers, and other administrative staff are vulnerable to liability issues. Creating the right liability package takes careful preparation.
How Can You Customize Management and Professional Liability Insurance?
Understanding the various components of liability coverage will help you create the package you need.
Directors & Officers Liability
Company officers and directors are not immune from making poor decisions or creating a situation where the company faces exposure to liability risks. Whether your officers make an inaccurate projection for profitability or face charges of misconduct, D&O management liability insurance can help.
Employment Practices Liability Insurance (EPLI)
Wrongful termination, misconduct, sexual harassment, and discrimination are severe claims for any business. Every business with employees needs employment practices liability to protect against the potentially costly litigation and settlement costs for claims like these.
Fiduciary Liability
Businesses have a fiduciary responsibility to their employees to manage retirement funds and benefits accounts properly and safely. Irresponsibility and negligent behavior that costs employees money or jeopardizes those funds is a liability. It even includes failure to educate employees on their investment opportunities.
Commercial Crime Coverage
Hiring any employees puts your business at risk for theft, fraud, and embezzlement. Commercial crime coverage will help your business recover losses from instances like this and any forgery by your employees or third parties that affect your business.
Kidnap and Ransom Insurance
When you do business in areas that pose high risks, including parts of Mexico where cartel abductions happen, or if you work in an industry with high visibility, take every possible step to protect your business and your employees from losses due to ransom charges or extortion demands. It is an integral part of any comprehensive management liability insurance package in Texas, especially if you plan to expand your business internationally.
What is Management Liability Insurance Doing for Your Business?
As your business grows, you face increased liability risks from many different areas, including your executive decisions, employment practices, investment decisions, and even situations entirely out of your hands. Creating a package with the correct liability policies can give your company peace of mind in your daily operations.
Do Management and Professional Liability Policies Exclude Anything?
Since management and professional liability coverage extends to many areas of your business operations, no standard exclusions apply across the board. Each policy will have its own declaration pages, with certain coverage inclusions, as well as exclusions. The policies usually exclude deliberate, illegal, or intentionally negligent actions. Understanding management and professional liability policies can help you protect your company’s finances in the face of errors in judgment, poor employment and business practices, and even extortion issues. Evaluate your company’s operations to identify the vulnerabilities and craft an insurance package that fits.
About Securance
From our home base in Texas, Securance serves the insurance needs of clients throughout the country and abroad. With 50-plus years as a trusted advisor to businesses, families, and individuals, we help clients safeguard their hard work and step confidently into the future knowing they are well protected.
Contact us today at (713) 977-6606.
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