Executives and officers of any company know that liability insurance is a must. What they may not realize, however, is the need for themselves, as managers of the company, to have that same protection. A management liability insurance specialist can explain that this type of insurance protects individual directors and officers should they be named in a lawsuit, which many times comes in addition to a suit against the company. Management liability insurance is not a given, and in fact, is not typically included, in a company liability policy.
Protecting Personal Assets
Newly appointed directors and officers can and do demand D&O insurance to protect their personal assets from lawsuits. Claims can come from a variety of sources, including:
Managers may face lawsuits over many different issues, including failure to follow worker safety laws and misrepresenting company assets. They can also be sued for lack of corporate governance, misusing company funds and other charges.
Employment Practices Lawsuits
Even the act of hiring employees can leave a company open to employment practices litigation, which is the most common lawsuit brought against business managers. EPL suits may be part of some D&O policies already, but a management liability insurance specialist is likely to suggest that companies add it to their corporate policy as well.