Executive management helps keep the business on course to achieve long-term goals starting today. Unfortunately, they also have unique liabilities other employees do not face. Executive liability insurance helps covers these liabilities, so management can continue moving the business forward.
The experts at Daniels Insurance Agency states that additional insurance protection helps protect beyond what the general liability insurance covers. Common additional policies necessary to protect these higher-level execs include Directors & Officers, Employment Practices Liability and Fiduciary Liability Insurance.
The reason for the additional insurance protection comes down to the uncommon exposures faced by private executive employees. Certain business activities fall on their plate rather than the general employees. Relationships with customers, regulators, creditors, and competitors put the executive at increased risk. Other uncommon exposures include perpetuation planning, raising capital, trade secrets, and mergers and acquisitions.
While a general liability policy covers items such as bodily injury to third parties on the business premises, insurance for executive liability covers breaches in fiduciary duty, mismanagement, and individual director protection. Depending on how large the business is, the company may need one, two or all three policies for adequate coverage.
Protect your executive management team with executive liability insurance. This information should clear up any misunderstandings between executive liability and general liability insurance policies.