5 reasons why a limited company should buy Management Liability insurance

The cost of arranging management liability insurance is relatively inexpensive especially for companies with a good trading history that have been established for over 2 years. Here are just 5 reasons why I think this cover is worth serious consideration:

  1. Whilst the liability of a company is limited, the liability of a director is not, and this is the key point to make. A director’s personal assets are at risk without insurance protection so the limit of indemnity must be adequate to reflect the value of their total individual assets
  1. The ever increasing risk of claims from many sources in this litigious society – shareholders, employees, customers and regulatory bodies to name just a few
  1. Employment law is constantly evolving and is a complex area – the same laws apply to small companies as well as large
  1. You don’t have to be a Director for a claim to be made against you. An action can be brought against any officer within a company, for example, the person responsible for human resources or health & safety
  1. The company may not be able to indemnify a director in the event of a claim made against them – particularly if it has gone into receivership

For further information about this type of insurance please contact Tony Gibbs on 0118 916 5485 or complete an enquiry form.

 

Author: Tony Gibbs | February 26th, 2014

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Tony Gibbs
Get in touch:   Reading: 0118 916 5480   London: 020 7036 8767   info@macbeths.co.uk