Management Liability protects you and your business in the event of regulatory investigations, contract disputes, insolvency related D&O claims, fraud issues and serious accidents. With over 90 Regulators in the UK, not including Local Authorities, spending a combined £4.9 billion, no business can ignore their regulatory responsibilities. A robust Management Liability Policy covers investigations from all UK Regulators including the Health & Safety Executive, Police, HMRC, ICO and the Environment Agency. 
Directors' & Officers' Liability 
D&O insurance protects directors, officers and other people with managerial responsibility from legal and other costs they may become personally liable to pay as a result of litigation. 
Why Do I Need D&O Insurance? 
Legislation over the last few decades has made the position of directors and senior managers more onerous in that it has increased their accountability for their actions or inactions, and for that of others. 
There are many laws now that regulate companies and their directors. In addition, ‘no win, no fee’ arrangements have increased the potential for claims to be made against a company and its senior management. 
It is frequently misunderstood that a company having limited liability status protects its directors and senior managers from personal liability. It does not. In reality, a director’s liability is potentially unlimited even to the extent of a charge on their salary if assets such as their home, cars and savings do not meet their liabilities. 
Who Can Sue Directors & Senior Management? 
Regulatory bodies, Employees, Customers, Competitors, Suppliers, Government departments or organisations, e.g. for health & safety, local authorities, HM Revenue & Customs, agencies for the protection of the environment and many more, Contractors, Creditors. 
What Actions Might Senior Management be Personally Liabile for? 
Employment disputes, including wrongful, unfair or constructive dismissal, harassment and wrongful discipline. Involuntary, constructive or gross negligence, manslaughter and far-reaching health and safety legislation. Anti-discrimination regulations, including sexual, racial and age discrimination. 
Wrongful trading i.e. trading in the knowledge the business is or will become insolvent. Unpaid taxes where the company has become insolvent. Bribery and corruption. 
Even if allegations are unfounded defence costs can be crippling, especially to smaller companies. Other legal costs, such as attendance at investigations into the affairs of the company, should not be underestimated. 
Company Legal Liability 
This section of cover responds where claims are made involving the company, either as the sole target or jointly with one or more individuals. 
Employment Practices Liability (EPLI) 
With an average cost of £20,000, EPL claims can be extremely financially damaging as well as draining management resource and potentially harmful to your company's reputation. 
Recent years have been extraordinarily active in shaping workplace law and this looks set to continue with employee rights strengthening. 
Employees are increasingly aware of their rights and companies need to ensure their procedures are up to date with legislation to avoid disputes and the significant expense of defending claims. 
Why Do I Need EPLI? 
Employment Practices Liability insurance can protect companies against the financial impact of a claim providing cover for: 
Damages (including injury to feelings), judgments, settlements, defence costs and awards or claimant's costs as well as pre- or post- judgment interest 
Legal representation costs for employment investigations. This cover also adds an additional defined limit of liability dedicated to such costs 
Cost of paying wages from date of purported dismissal to date of judgment in the event that the company is ordered to re-instate or reengage worker 
Punitive and exemplary damages where insurable by law 
Legal Defence & Advice 
Proactive legal advice and representation against common and evolving risks for UK registered businesses, charities and Housing Associations including template letters, HR & Employment advice. 
Examples of Management Liability Claims 
Health & Safety Investigation - Building Contractors 
The Insured company commenced a design and build project. Two Health and Safety Inspectors attended site and conducted an unannounced safety inspection. Concerns were raised, and following investigation by the Health and Safety Executive, they initiated a prosecution against the Insured Company for allegedly failing to discharge the duty imposed upon them to take all reasonable steps to prevent danger to any persons. 
The Insured Company were issued with a fine of £50,000 and Chubb provided cover for defence costs up to the client’s policy limit of £100,000. 
Pregnancy Discrimination - Retailers 
An operations manager informed her employer that she was pregnant. She claimed they then told her to resign. She refused, so she was dismissed, which she alleged was due to her pregnancy. The employer argued that it was due to her unsatisfactory approach to work and unauthorised absences during work hours. 
The case settled before the scheduled tribunal hearing with settlement and defence costs totalling over £75,000. 
Constructive Unfair Dismissal, Discrimination & Victimisation - Technology Company 
The claimant alleged constructive unfair dismissal, race discrimination, victimisation, breach of contract and breach of the ACAS code. The claimant offered to accept £160,000 in respect of injury to feelings and the loss of earnings and with the provision that a reference be provided for future employers. Despite having little merit, the costs of dealing with the claim to conclusion were in excess of £60,000 and were not recoverable by the client. 
Whistleblowing - Zoological Society 
An employee was dismissed from the Insured Company and brought a Claim in the Employment Tribunal for Unfair and Wrongful Dismissal, Whistleblowing, Disability Discrimination. The Claimant was seeking above £140,000. 
The Claim was settled for £75,000 plus £30,500 Defence Costs paid by Chubb the insurers. 
Breach of contract - Further Education Establishment 
The Insured company entered into a contract with a retailer for the supply and sale of clothing. The retailer went into administration and a dispute arose with the new company who purchased the retailer alleging that they became owners of the stock under the agreement held with the Insured company. The contract was terminated by the Insured Company but proceedings were issued by the new retailer company for breach of contract. 
Chubb provided cover for defence costs amounting to just under £24,000. 
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