What you need to know about a Management Liability policy
For those whose lives do not revolve around insurance, you may be unfamiliar with what constitutes a ‘Management Liability’ policy. Management liability products are continually developing and it is important that your business is abreast of the exposures associated with your company’s assets and its people.
A Management Liability policy has three different sections of cover:
Directors and Officers Liability:
Pays for the legal costs, awards and settlements for any claim, investigation or regulatory action brought against any past, present or future director, officer or employee.
Company Legal Liability:
Protects the company against claims made against the company, this excludes employment-related claims.
Employment Practices Liability:
Protects the company against employment claims made against it such as wrongful dismissal, harassment, failure to promote and discrimination.
Below is a table containing the average employment tribunal awards 2018/2019*. Could your business afford these costs in the absence of adequate insurance?
|Race Discrimination jurisdictions||£14,120|
|Sex Discrimination jurisdictions||£17,959|
|Disability Discrimination jurisdictions||£14,000|
|Religious Discrimination jurisdictions||£25,968|
Management Liability policy with AXA
Now if you’re reading this and thinking “where do I start?”, don’t worry. At One Broker, we have worked closely with insurance giant AXA to put together an MLP package that works for you and your business.
Based upon main policy limits of £1,000,000, your annual premium for this can be as little as £750. Due to our strong relationship with AXA, we have negotiated exclusive additional crime cover. This includes protection for financial loss due to dishonesty of an employee, third-party fraud or forgery, and telephone fraud.
An AXA Management Liability Policy (MLP) provides you with access to rradar, AXA's exclusive legal services partner. rradar is a specialist litigation and commercial law firm that provides a range of digital tools, legal and risk management advisory services to help prevent legal and regulatory claims occurring included under the MLP.
Arguably, one of the best things about this policy is that there is no limit to the number of times a policyholder can contact or access rradar’s advisory services. Neither is there a limit to the time their advisors can take to support you. Meaning you can talk through the advice at length with their team at no extra cost.
rradarstation proactive advice includes:
Should an issue escalate into a legal claim then rradar’s highly experienced legal team is there to support and provide the best possible defence and advice.
In an emergency, policyholders can also call the rradar 24-hour crisis line and speak directly to their legal team who will advise on how to best work with the Police, Health and Safety Executive or any other investigating and regulatory bodies. In the event of a tribunal or court case, policyholders are represented by rradar’s teams of specialist solicitors and barristers.
Whilst your liability to the business is limited, your liability to others is unlimited. In other words, your personal assets could be at risk if you cannot afford to defend yourself against a claim or you are held to be liable for a claim.
Note that you do not have to have done anything wrong for a claim to be made against you. Even if you have done nothing wrong, it is most likely that you will still be responsible for your own legal defence costs. Such costs are included within a Management Liability policy so you wouldn’t have to worry about the costs of defending yourself from frivolous claims!
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