Management Liability (Directors & Officers) Insurance
In an increasingly litigious world, your company’s officers and your Board of Directors are personally at risk.
Management Liability (ML) or Directors & Officers Liability Insurance (D&O) protects the directors and officers of a business/organisation from legal action initiated by shareholders, employees, creditors, competitors, regulators and, in a worst case scenario, liquidators. ML/D&O Insurance may also be extended to protect directors against legal action from within your organisation (ie other Directors). ML/D&O insurance, in some cases, can also be extended to cover the entity itself.
ML/D&O Insurance provides your executives with protection from personal liability and financial losses resulting from wrongful acts allegedly committed in their role as corporate officers. Whilst a company is legally able to cover actions against a director or an executive, in some cases indemnification by the company may not be possible. In these cases, ML/D&O insurance may be the only means a director may have at their disposal to protect their personal assets.
With ML/D&O Insurance, it is generally NOT a case of one size fits all - in order to ensure appropriate coverage, the solution does need to be tailored for each situation. In this rapidly evolving business landscape, your requirements also need to be reviewed on a regular basis to ensure the appropriate protection continues to be offered. AB Phillips will help you design and implement an ML/D&O Insurance policy that fits with your business. We take a three step process;
We review what your business looks like now, and what you expect it to look like over the next two years
We identify your corporate and personal exposures to liability
We create a risk mitigation program that incorporates operational, procedural and structural considerations as well as the most appropriate ML/D&O coverage available.