Management mess-ups can and do occur. Businesses in every industry face potential litigation directed against the company, management team or board of directors.
Competitors may claim anti-competitive business practices, pirating employees, theft of intellectual property, and wrongful interference with a contractual or business relationship.
Customers, vendors, creditors or regulators may contend your team engaged in fraud, financial misrepresentation, failure to disclose material information, misuse of funds or failure to supervise and manage.
Employees may allege wrongful termination, sexual harassment, wrongful discipline, failure to employ or promote or unlawful discrimination. Participants in your 401k plan can maintain mistakes in the plan administration or poor recommendations and investment options.
Responding to allegations, with or without merit, is costly and a major distraction from conducting normal business. Legal expenses alone could be financially crippling for an organization, as well as any individuals named in the legal action. Management liability insurance provides coverage for you and your company for alleged or real management mess-ups.
Here is a presentation providing an overview, claim examples and short videos on directors and officers, employment practice liability, and fiduciary liability coverage. The document is a PDF file with links.
For a no obligation review of your current policies, more information on this article or the CSIA insurance programs in general, please contact me, Paul Barnard, at paulbarnard@csia-insurance.com or 001-610-507-6595.