Sometimes even the most dedicated and diligent executive or professional can inadvertently provide advice or services contrary to their customer’s wants. When this happens, you face the personal risk of losing an extraordinary amount of time and money...unless you have the right kind of protection to shield you from any financial loss.
Whether you are an officer, director, manager or business owner, conducting business without the protection of solid Management Liability Insurance Coverage, exposes you to 100% of the risk associated with potential liability claims stemming from your managerial decisions. Day to day decisions you make in operating your business could lead to claims of mismanagement about employment practices, fulfillment of directors and officers duties, or lack of care for those to whom you have a fiduciary obligation. Also known as Management Malpractice Insurance, this coverage is extremely important when it comes to protecting an executive from the financial loss associated with a claim or lawsuit.
In today’s complex world, we often expect a higher standard of behavior from executives and directors. When professionals do not meet that expectation, they most likely are legally liable. Luckily, the right protection package can save businesses thousands of dollars by shielding them from potential lawsuits, settlements, and accusations. In the past, some companies have won large settlements due to mistakes. Today, a carefully crafted policy would cover the costs of these mistakes up to the policy limits.
Consider what would happen if one of your employees mismanages a pension, savings, profit-sharing or employee benefit plan. Who would be liable to the beneficiaries for any breach of their fiduciary duty? If you are the owner or officer who makes decisions about the company’s benefits plans, then you could be at risk.
This Insurance covers directors, executives, officers and business owners from ineffective management activities, employment practices, breech in fiduciary duties, kidnapping, ransoms, and extortion. Most Management Malpractice Insurance takes care of judgments, defense costs, and settlements. Even if the accusations are groundless, the cost to defend a case in court can run upwards of one hundred thousand dollars or more.
The main reason for purchasing Management Liability Insurance Coverage is that a standard general liability policy only covers third party claims of property damage and bodily injury. However, what you really need is coverage that protects you and/or your executives against liability claims such as employment practices liability, negligence, incorrect advice, misrepresentation, and bad faith.
Most accountants, architects, engineers, lawyers and doctors carry this type of protection. However, business owners, directors and officers are also in dire need of the protection afforded by a good management malpractice policy.
Vancouver’s Davidson & Associates Insurance believes that this coverage is not only important, but essential, for financially protecting all business owners and executives.
Unfortunately, we live in litigious times and all business executives are vulnerable to lawsuits. The friendly staff at Davidson & Associates Insurance can help you find the right insurance to fit your business need.
Management Liability Insurance Coverage is known by other names in specific industries. For instance, legal and medical professions call it Management Malpractice Insurance while others may refer to it as executive liability insurance
The coverage you need depends on the type of business and the perceived risk associated with the business. Davidson & Associates Insurance can evaluate your business and recommend a policy which adequately covers your business needs.