Businesses in any industry, of any size, can be affected by lawsuits brought against the company, board of directors and the executive management team. Omissions insurance for managers, commonly known as management liability insurance, is a risk transfer tool. This cost-effective program can protect personal assets of high-ranking decision makers as well as the company’s balance sheet.
Depending on the degree of exposure and risk tolerance of the company, an array of policies can be assembled and structured with an individual limit for each coverage as well as an aggregate limit. The goal is to protect the business and its duly appointed employees against events and situations not covered by a general liability policy.
Several types of policies may be bundled together, creating a solution that best fits the company’s needs. Commonly bundled policies include:
- Directors and Officers liability insurance is available to public, private and nonprofit organizations. It protects them against personal financial loss resulting from litigation from alleged wrongful acts in their capacity as directors and officers.
- Fiduciary liability insurance is an employer-sponsored plan that covers individuals serving as a director, officer, trustee or employee of the designated policy.
- Employment Practices liability insurance covers damages and defense costs resulting from alleged or actual employment practice violations. Policies can include applicants, employees, and third parties.
Omissions insurance for managers is designed to protect the company from certain types of liability. Coverage also safeguards the personal assets of individuals and groups within the company past, present, and future.