Quality professional insurance services for Solicitors

Management Liability (also referred to in its more limited form as Directors & Officers Insurance) – What does it do ?

Whilst claims and allegations made by clients are catered for under the professional indemnity policy, those in connection with management of the business may not be. As a Principal, Manager, COLP, COFA, MLRO, Data Officer etc. you are personally exposed to such claims and if you are responsible for making sure there is protection in place for the business and its key individuals, not doing so adequately can leave you open to criticism.

Management Liability insurance offers a comprehensive solution to protect reputation, personal assets and the companies balance sheet from allegations of wrongdoing made by a whole range of individuals and organisations including Regulators, shareholders, employees and suppliers. Typically, it can cover defence costs, damages and awards plus fines and penalties (where legally allowable).

This form of cover has become more important due to stricter rules around corporate governance and heightened activity by Regulators under pressure to take action where wrongdoing is alleged to have occurred. Economic downturn also plays its part in increasing levels of dissatisfaction related legal action.

“Alleged wrongdoing” is an important point of note because even where there is ultimately found to have been no wrongdoing, having the funds for specialist legal defence against those allegations whilst you get on with the day to day management of your business can be vital. Not having the funding or the right team in your corner can also result in acceptance of an allegation which can result in a fine, reputational damage and in extreme cases, imprisonment.

Some key features we look for in a management liability policies are:

  • Cover for all individuals in the business that through their role is exposed to action taken against them personally

     

  • Cover for Investigations by Regulatory bodies including defence costs for the Entity

     

  • For SRA regulated organisations there should be no restrictions regarding which SRA investigations team is involved (often an exclusion hidden in the wording)

     

  • No blanket exclusion of cover when there has been Intervention enforced by the SRA

     

  • Cover for civil and criminal allegations

 

Professional  Indemnity

Cyber Liability

Management Liability

 Other Professions

Confidential review service of existing policies

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