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Management Liability Insurance is tailored to fit the specific needs of a business, covering a range of managerial risks including legal cost, crime caused by emplyees, director and officer’s liability…etc…
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Only directors and executives of private limited companies (Ltd) and public limited companies (PLC) were thought to need Management Liability insurance in the past; but, in more recent times, limited liability partnerships (LLP), trustees, partnerships, and sole traders have been able to get it.
Although it is not legally required, management liability insurance is strongly advised given the rising frequency of lawsuits against businesses. All businesses should at the very least take this coverage into account and make an educated decision regarding whether to move forward with a policy or not.
When it comes to management liability plans, there are a lot of myths out there. To learn more about the truth about these policies and some of their extra benefits, check out one of our earlier posts, which can be found here.
A company director is subject to statutory responsibilities outlined in the Companies Act of 2006, for which they might be held personally accountable in the case of a breach. As a result, in the event of a breach, management liability insurance would pay for all associated legal fees and any damages resulting from a losing defense.
A fraudulent allegation still needs to be defended, so it can easily spiral out of control and become an expensive matter. See our earlier blog post, wherein we spoke with Stephen Marriott-Smalley, one of our Commercial Client Executives, on the significance of Management Liability insurance for firms.
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