You can never have enough insurance coverage for your business. As much as sales are important for continued growth, insurance is necessary to protect that growth against outsiders. While most business owners understand the need for general liability insurance, management liability insurance can be just as important. Read on to learn what it’s all about and why it needs to be part of your business insurance policy.
What is it?
Management liability insurance is an umbrella term for a number of protections geared towards your organization and its leaders. Some of the specific coverages include:
- Crime insurance: covers your assets in case of criminal behavior by one of your leaders.
- Directors & Officers Liability: protects your leaders against claims by competitors, regulators or shareholders.
- Employment Practices: protects your business against claims of discrimination, wrongful termination and other employment practices.
- Fiduciary Liability: provides coverage for your benefit plans and any employees that oversee them.
Kidnap and Ransom: provides protection for high net worth individuals within your company no matter where they are.
Do You Need It?
For newer businesses, employment practices coverage will be needed as you begin to bring on employees. For mature businesses, the amount of management liability insurance you need will be up to you and your agent to determine.