management liability insurance
Insurance that covers exposures faced by directors, officers, managers,
and business entities that arise from governance, finance, benefits, and
management activities (also called "executive liability insurance"). This
includes (1) directors and officers (D&O) liability insurance, (2)
employment practices liability (EPL) insurance, (3) fiduciary liability
insurance, and (4) "special crime" insurance (covering kidnap, ransom, and
extortion exposures). These coverages may be written as stand-alone
insurance policies or combined into a single, "package" policy. Management
liability policy "package" policies usually contain a set of common
conditions applying to all of the coverage lines purchased. In most cases,
an insured must select a minimum of two types of coverage to be eligible to
purchase a management liability "package" policy. This arrangement offers
meaningful premium discounts because much of the same data is needed to
underwrite employment practices, directors and officers, fiduciary, and
special crime coverages. Management liability "package" policies are usually
available only to privately held firms, not-for-profit organizations, and
small publicly traded companies (i.e., those with annual sales of under $25
million). Large publicly traded firms generally purchase stand-alone
policies. See also
Directors and officers liability insurance;
Employment
practices liability insurance; Fiduciary liability insurance;
Special crime
insurance.
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