management liability insurance, directors and officers insurance, financial lines insurance

What’s the difference between Directors’ and Officers’ Insurance and Management Liability?

What is Management Liability (ML) and Directors’ and Officers’ (D&O) Insurance?

Often considered interchangeable, ML and D&O are different insurance solutions. While ML insurance did start as an offshoot of the public company focused D&O insurance, it’s a much broader form of cover. It’s designed for small to medium sized enterprises (SME) and provides cover for those accused of failing in their responsibilities as managers, in addition to some common business risks facing the company.

D&O is intended for bigger, more corporate companies and provides cover for those accused of failing in their duties as directors and officers (both past and present), essentially for the benefit of directors and officers only.

What does management liability cover?

According to our insurer partner, Vero, ML can include:

  • D&O cover
  • Company liability
  • Employment practices liability (loss arising from claims brought by employees (past or present) alleging discrimination or harassment)
  • Crime loss cover (including investigation expenses)
  • Tax audit expense cover
  • Cover for pecuniary penalties incurred by insured persons/the company
  • Cover for the cost of representing the insured/company at WH&S investigations
  • Cover for the costs of representing the insured at certain other official inquiries.

Essentially ML is designed to cover damages and claimant costs awarded against you, legal cost, investigation costs, fines and penalties.

Questions or get a quote

If you have any questions about the above, please don’t hesitate to contact us for more information or a quote. Remember that every business is different, which means you face unique risks and challenges and should get advice from your trusted insurance broker about the type of insurance solution that’s right for you.