Management Protection Insurance Plans Offer Wide Coverage

A good management protection insurance plan can provide a great deal of coverage for business owners to protect against a large list of potential risks, such as executive liability insurance or officers and directors liability coverage, for example. Risks from regulatory oversight, potential securities fraud, wrongful hiring and firing practices, fiduciary mishaps and other potential perils all can prove extremely costly to a business.

A good insurance protection plan will insure a firm against the potential fallout of any executive or management decisions that have a profoundly negative impact on the operations, such as a costly sexual harassment lawsuit or worse. Most of the non-profit organizations affiliated with former Penn State assistant football coach Jerry Sandusky were protected with such insurance plans. Although none had any hand in the heinous acts for which he was convicted, the potential for fallout from civil and legal lawsuits could be very, very costly and highly damaging without the right level of insurance protection.

Most management protection insurance plans are tailored for private and public profitable corporations, including banks and other financial institutions, and not for profit organizations. Typical insurance plans have standardized forms from which to work and write out policy declarations, representations and any coverage exclusions. The liability insurance coverage provided by the management insurance protection plans is very broad and can have very high limits.

Some insurance firms offer a very broad range of coverage with the specialized insurance plans that protect against the potential errors, crimes and other acts of executive and management members of various organizations. The commercial line of insurance can provide coverage for executive liability to protect against damages caused by potential errors and other mishaps arising from managerial decisions. And fiduciary liability coverage is available as well to help protect the funds and other valuables owned by others but in the legal care of an institution, such as a bank or securities firm. If an error in managerial judgment results in a loss for a client, that client would be covered with the right insurance plan.

Among other types of coverages are employment practices liability to protect against financial harm caused by the hiring, firing and daily operations involving potential, current and former workers. Crime and fidelity coverage might be available to help protect against criminal actions resulting in financial loss. And some plans can be added to protect against the costs of a kidnapping, ransom or extortion attempt targeting an executive or manager of an insured firm.

Some insurance firms also offer management protection insurance plans with continual enhancements to stay abreast of any new risks, such as technological developments, state and federal regulations and other factors that can create problems for firms and others after pursuing a course of action that proves to be counter productive. But when forms are updated each year, the insurance coverage becomes very comprehensive and adjusts to changing needs, risks, businesses practices, regulatory review and other factors that can change from year to year and even month to month. By Mike Heuer