Nobody wants to be held liable for mismanagement of a company. But just one serious mistake can leave you at risk of losing not only your business but your home and other personal assets.
Management Liability Insurance protects you, the company, and its principals against the risks of running the company (i.e. mismanagement). Mistakes, whether they’re innocent or deliberate, mean legal costs to defend allegations of wrongful acts and mismanagement. These costs alone – not to mention the amount of the settlement – can ruin a company and its key players.
It’s important to note that management liability insurance is not the same as professional indemnity insurance. Professional indemnity insurance only covers you for claims against your services or advice. It does not cover you for mismanagement of company funds, tax fraud, unfair/wrongful dismissal, employee theft, breaches of confidentiality, insolvent trading, or misappropriation of secrets (just to name a few risks). These are covered under management liability insurance.
There is also the risk of damage to your / your company’s reputation in the event of a claim. Just the news that your company or its principals are being investigated, can lead to immediate defection even by loyal customers.
The reality is that you face both personal and corporate liabilities when it comes to managing a business – meaning you can be held personally liable. Don’t be caught underprepared. Protect the company, its directors and officers, and its employees from financial hardship due to claims against the company and/or its people. It’s necessary peace of mind so if you’re not sure your company is adequately protected, talk to Ideal Insurance today!