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.