Management Liability Insurance Explained: A Complete Guide

What Is Management Liability Insurance?

Management liability insurance is a specialist business insurance policy that protects company directors, officers, and senior managers from legal claims related to their business decisions. It also provides protection for the company itself in cases of employment disputes, regulatory fines, and corporate lawsuits.

This type of insurance is essential for small businesses, large corporations, and startups to safeguard executives' personal assets and business finances.

What Does Management Liability Insurance Cover?

Management liability insurance typically includes three key areas of protection:

1. Directors & Officers (D&O) Insurance

• Protects directors and senior executives from personal liability if they are sued for decisions made while managing the business.
• Covers legal defence costs, compensation payments, and regulatory investigations.