Every business needs protection against possible complaints made against it. Whether your company is at fault or not, claims filed against your management could be costly if you don’t have the appropriate insurance package to cover it. A management liability policy is an insurance package that can contain various types of insurance designed to combat many of the risks you take on as a business owner.
Your management liability insurance covers the cost of your legal defense when you are the named defendant in a case against your management or the company itself. This is useful even if the charges brought against you are not found worthy of a settlement. Any damages that the court awards the claimant against you, including their legal fees if you are ordered to pay them, are also covered by your management liability policy. If an investigation into the matter takes place, any costs associated with it may be covered by your insurance. Certain policies within the package may even pay pecuniary and civil fines.
As the decision makers, the management team of your company can be at risk for claims made against them regarding accusations of unfair business practices or similar complaints. Having a good insurance policy that protects them and the company is a good idea.