Management Liability Insurance covers Directors and Officers. Therefore, this type of policy can help to protect you from claims made from different levels of business. That is to say complaints can come from anybody in the business or outside, whether from shareholders or customers. In short, this insurance will cover the cost of compensation claims made against your business’s directors and officers for alleged wrongful acts.

If you are a Director, Business owner or Officer, you could make an error. Therefore this could lead to compensation being owed. For instance, you may be accused of wrongdoing from different areas of the business. In this case, this type of policy can protect you as a director or officer against a claim. However, this policy would not protect you against breaches such as fraud.

Your company could come under fire due to complaints. For example, an employee may have done a job incorrectly. In this case, this policy can protect your business against the possible legal action that you could face. For example, your business is laying pipes and a mistake is made. Consequently the mistake leads to contamination of water which would lead to a claim.

Laws around employment can be complicated therefore you may wish to take out this policy. For example, discrimination and unfair dismissal. Generally unfair dismissal can be very common. Therefore, it is best to be covered and this could save your business from large costs if claims are made.