Management Liability Insurance is a type of insurance designed to protect the personal assets of the directors, officers, and managers of a company, as well as the financial well-being of the company itself, against the costs associated with defending against claims related to management decisions and actions.

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What is Covered:

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Management Liability Insurance typically provides coverage for:

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• Directors' and Officers' Liability: Protection for claims made against the personal liability of company directors and officers.

• Company Reimbursement: Reimbursement to the company if it has paid the claim of a director or officer.a

• Employment Practices Liability: Coverage for claims made by employees alleging wrongful acts in the management of the employment relationship, such as wrongful termination, discrimination, or harassment.

• Statutory Liability: Protection for fines and penalties that may be imposed on the company or its managers for unintentional breaches of certain laws.

• Defence Costs: Legal fees associated with defending against claims, even if the claims are groundless.

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What is Not Typically Covered:

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While Management Liability Insurance provides broad protection, there are exclusions. These typically include:

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• Intentional Illegal Acts: Any deliberate illegal acts or intentional regulatory breaches by company leaders are not covered.

• Known Claims: Claims or circumstances that were known prior to the inception of the policy are typically excluded.

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• Bodily Injury and Property Damage: Claims related to physical injury or property damage are generally not covered under this policy and require separate coverage.

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• Contractual Liabilities: Liabilities assumed under a contract beyond what would be imposed under common law are generally not covered.

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• Insured vs. Insured Claims: Claims made by one insured party against another insured party under the same policy are often excluded.

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• Creditors' Claims: Claims made by creditors of the company are typically not covered.

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• Professional Services: Claims arising from the provision of professional services, which are typically covered under Professional Indemnity Insurance.

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