Directors and Officers Insurance or Management Liability Insurance
Management Liability Insurance
This insurance automatically covers all directors, officers and anyone who makes an authorised management decision for any error in their management & fiduciary duty.
This insurance is important for people who have external investors, taking over a distressed company, under government regulation (MAS) or planning to raise funds through equity or a loan.
This insurance is likely required if you are raising funds from an institutional investor.
What cost does it cover?
- PR cost
- Legal defense cost and damages for the insured person
- Covers the entity for an employment dispute or if the entity is paying for insured person’s legal cost and damages
It may not cover the following:
- Any claim related to the nature of your business (Professional Indemnity) or insured versus insured lawsuits
Most claims made are from investors, senior and key employees, during insolvency or due to breach of government regulation.
