Although many think that being in management comes with perks and privileges, they often forget about the negatives that come with being a position of responsibility and leadership. One area of concern for those who work in management is the liabilities associated with their decision-making. Even though operating under the authority of the company, there a times when a company’s insurance policy has a gap in coverage for areas of professional liability. By having management protection insurance, directors, trustees, and other insured persons have support against personal liability claims of wrongful acts. According to the information at https://www.moodyinsurance.com, such a policy can potentially past, present, and future directors and officers.
Areas of Coverage
The nature of the policy will vary according to the carrier, but the plan will usually establish a definition for the actual or alleged wrongful acts. It will also specify a reporting or claim period that coincides with the life of the policy, and it will identify what type of investigations are covered and the extent of the costs of the legal representation. In addition to these primary areas of coverage, policies have also been known to have the following inclusion:
- Civil penalties
- Compensation for court attendance
- Emergency costs or expenses
- Spousal coverage
- Public relations consultation fees
- Employment practices liability
Having this coverage adds an extra layer of defense against damaging litigation. In some areas of business, it is better to have the coverage and not need it, than to need it and not have it.