Operating a business comes with a lot of responsibilities. You must navigate various risks to protect your investment. Sometimes, accidents will happen. Having the right protection in place can prevent a disaster. Here’s how management liability insurance can help protect your business.
If you operate a small business, even one lawsuit could lead to significant financial losses. This is where management liability insurance can be an asset. The policy is designed to protect your officers, managers, and board of directors against mismanagement and workplace discrimination allegations.
This type of policy provides liability coverage that exceeds a basic general liability policy.
Directors and Officers liability insurance covers your directors and officers if they are accused of making an error due to negligence. They’re also protected against allegations of improper conduct. D&O insurance covers potential legal defense costs.
Commercial crime insurance protects your business against a potential financial catastrophe as a result of fraud or employee theft. The insurance covers any damage to your property, cash, or inventory. Your business is also covered against any damages/losses caused by third parties.
Employment Practices Liability Insurance covers your business if an employee sues your management for allegations of harassment, discrimination, and wrongful termination. The insurance covers both management and your employees against wrongdoing.
Kidnap, and ransom insurance protects your business against potential losses due to kidnapping, ransom, and extortion threats. This type of coverage benefits your business if your employees work in high-risk settings.
Fiduciary Liability Insurance protects your assets against allegations of mismanagement. The Employee Retirement Income Security Act states that fiduciaries are expected to serve the interests of participants. Under the Act, they could be held liable for mismanaging employee funds. Fiduciary liability coverage protects your company and anyone serving in fiduciary roles.
Management liability insurance is beneficial if you run a small business. Negligent and wrongful acts could put your entire investment at risk. It’s impossible to manage every single decision made by people in the company. Maybe an investor purposely makes bad decisions with employee funds. Maybe two of your employees are engaged in a harassment dispute. Management liability insurance protects your business while you navigate these situations.
Handling several responsibilities can be overwhelming as a business owner. If an issue arises in the company, it’s important to have a safety net in place. Management liability insurance can prevent a financial disaster from occurring. If you have questions about the policy, contact the team here at CF&P Insurance Brokers, and we will assist you.