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Management Liability Insurance

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What is Management Liability Insurance?

Management Liability Insurance is split into three main parts, Directors and Officers insurance, Corporate Legal Insurance and Employment Practices Liability Insurance. These covers will provide essential protection against the financial costs of claims being made. If there is a time where the company is required to indemnify the Directors and legal entity, this insurance will cover the potential losses.


Why do you require this cover?

As a Director of a limited company you accept unlimited Personal liability. We as your broker often come across claims against directors made by Shareholders, Other directors, Employees, The public and even Regulators. Even if the claim being made is proven unsuccessful and unjustified you may have to battle against it. This process can be very expensive and an arduous task for a director to go through.


How much does it cost? – Premiums from £107

The premium is determined by the turnover of your business, and the limit of cover you require. This cover will include Directors and Officers Insurance and Corporate Legal Insurance with the added option of Employment Practices Liability Insurance.

“We have dealt with DPI Insurance for in excess of 8 years for our commercial combined policy. They have a genuine understanding of our business activities and the technical expertise to provide competitive cover that accounts for the high risk trades we supply to where other brokers have failed. If you require a professional broker with specific knowledge of the Hardware and Industrial Fastener trade DPI Insurance would be a good starting point.”

David McMaster, Director of DP Fasteners Ltd

Claims Examples

• Two directors of a company which was in liquidation, with a total deficit of £216,000, were held jointly for £75,000 damages (plus interest and costs) arising from wrongful trading whilst the company was insolvent.

• A director who accepted an order at a trade fair but couldn’t recollect the details the following morning found himself being sued by his customer for breach of contract.

• Directors of a construction company were successfully sued for losses incurred by an architect who relied on a director’s repeated assurances that a contract performance bond had been arranged.

• A company is suing the directors of one of its competitors for allegedly breaching trade practices

• Directors were prosecuted after their failure to identify the company correctly on the company notepaper and invoices in breach of the Companies Act.

Types of claims made against Directors

  • Employment claims
  • Breach of duty or trust
  • Negligence
  • Defamation
  • Health and safety or manslaughter claim
  • Wrongful trading under section 214 of the Insolvency Act 1986
  • Pension or employee benefit scheme
  • Pollution