Management Liability Insurance

The increase in professional services to clients often requires that companies delegate management responsibility among smaller groups of partners or shareholders. This corporate management structure exposes partners and shareholders to many of the same liability risks traditionally faced by the directors and officers of corporations.

Like most corporations, many professional service companies, including law firms, accounting firms, and professional consultants, require specialized insurance for the decisions they make in the day-to-day management of their business.

Management Liability Insurance policy provides specialized coverage for:

• Claims brought by partners not involved in the firm's management, which is not covered by D&O or E&O liability insurance policies;
• Claims of mismanagement or negligence in the day-to-day business decisions made by the firm's management committee or executive officers.
• Partnership agreements and compensation disputes.
• Business tort, such as for claims for interference with contractual relations.
• Punitive damages (where insurable by law).

Management Liability Insurance also provides:

• Defense sublimit of 10% for claims seeking enforcement of a contract.
• Spousal coverage.
• Coverage for subsidiaries.