MANAGEMENT & PROFESSIONAL LIABILITY
Decisions Made on Behalf of Others Deserve Their
Own Protection
Management decisions can create risks that property and general liability insurance were not designed to address. Directors & Officers, Employment Practices, and Fiduciary Liability coverage can protect organizations and the people who make decisions on their behalf against claims arising from governance, employment, and employee benefit plan responsibilities.
What General Liability Leaves Uncovered
General liability is built around physical events: someone slips, something breaks, a contractor causes damage. It was never designed to respond to management decisions, and it won't.
​
When a board member is named personally in a lawsuit over a governance decision, general liability does not respond. When a current or former employee brings a discrimination or wrongful termination claim, general liability does not respond. When a plan participant alleges that a fiduciary mismanaged benefit assets, general liability does not respond.
​
These are the exposures that management liability exists to cover, and they are among the most common sources of personal financial risk for board members and ownership-entity principals.
Protection for the Decisions Behind the Organization
Boards, owners, executives, and other decision-makers take on responsibilities that can lead to claims even when no bodily injury or property damage has occurred.
​
Those claims can arise from decisions involving governance, ownership, employees, finances, business operations, or employee benefit plans. Management & Professional Liability addresses these risks through coverage designed for the responsibilities of the organization and the people acting on its behalf.
Directors & Officers Liability
D&O insurance can protect organizations and their directors, officers, board members, and other insured persons against certain claims alleging wrongful acts in the management or governance of the organization.
​
The circumstances vary by organization. A community association may face allegations involving enforcement, elections, assessments, or board decisions. A privately held business or ownership entity may face claims involving management decisions, ownership disputes, financial decisions, or other actions taken on behalf of the organization.
Employment Practices Liability
Employment Practices Liability Insurance (EPLI) addresses certain employment-related claims involving allegations such as discrimination, harassment, retaliation, wrongful termination, and other covered workplace conduct.
​
This exposure can exist anywhere employees are part of the operation, including privately held businesses, property ownership and management organizations, multifamily operations, and community associations with employees.
Fiduciary Liability
Organizations that sponsor employee benefit plans, such as 401(k) and other retirement or health benefit plans, can create specific responsibilities for the people who administer or oversee those plans.
​
Fiduciary Liability insurance can address certain claims alleging those responsibilities were breached. This is separate from the broader management and governance responsibilities generally addressed by D&O insurance.
The Policy Details Matter
Management liability policies can differ significantly in who and what they protect. Definitions of insured persons, covered organizations and wrongful acts, along with exclusions, defense provisions, limits, and other terms, can materially affect how a policy responds.
​
The review should reflect the organization itself: how it is structured, who makes decisions on its behalf, whether it has employees, what benefit plans it sponsors, and what responsibilities those individuals and entities carry.
​
The goal is not simply to confirm that a policy exists. It is to understand who and what it is intended to protect and where its limitations may matter.
Frequently Asked Questions
Directors & Officers insurance can provide coverage for organizations and insured individuals against certain claims alleging wrongful acts arising from management or governance responsibilities. Depending on the policy, this may include claims involving business decisions, governance, financial management, ownership disputes, or actions taken by a board or other decision-makers.
General liability and D&O insurance are designed to address different types of claims. General liability typically focuses on claims involving bodily injury, property damage, and certain other defined offenses. D&O coverage is designed to address certain claims alleging wrongful acts involving management or governance.
Fiduciary Liability insurance can provide protection against certain claims alleging breaches of responsibilities associated with employee benefit plans, such as 401(k), retirement, or health benefit plans. It is separate from D&O insurance, which generally addresses broader management and governance responsibilities.
D&O insurance should be considered by organizations where directors, officers, board members, executives, or other individuals make decisions on behalf of the organization. This can include privately held businesses, ownership entities, community associations, and other organizations with formal management or governance responsibilities.
Employment Practices Liability Insurance, or EPLI, can provide coverage for certain employment-related claims involving allegations such as discrimination, harassment, retaliation, wrongful termination, and other covered workplace conduct. Coverage may extend to claims brought by current employees, former employees, and applicants, depending on the policy.
Yes. Management liability programs may combine D&O, EPLI, Fiduciary Liability, and other coverage sections within a single policy or package, or they may be written separately. The appropriate structure depends on the organization's exposures and the terms and coverage available.
Yes. Individuals can be named in claims arising from decisions or actions taken on behalf of an organization. Whether a D&O policy responds depends on the allegations, who qualifies as an insured, applicable exclusions, and the other terms of the policy.
Employment-related claims are not limited to large companies. Any organization with employees may have employment practices exposure. Whether EPLI is appropriate depends on factors such as the organization's employees, operations, management structure, and existing insurance program.