Management Liability and Professional Indemnity Insurance address different types of risk.

One does not generally replace the other.

Management Liability Insurance #

Management Liability Insurance can address certain claims involving:

• Directors and officers
• The organisation itself
• Employment practices
• Regulatory investigations
• Statutory liability
• Employee dishonesty
• Tax audits

The focus is generally on the management and operation of the organisation.

Professional Indemnity Insurance #

Professional Indemnity Insurance generally addresses certain claims arising from professional advice or services.

Examples can include allegations involving:

• Incorrect advice
• Design errors
• Documentation errors
• Failure to meet a professional standard
• Misleading or inaccurate information
• Errors or omissions causing financial loss

Can both policies be involved in one matter? #

Potentially.

A dispute could contain allegations about professional services as well as decisions made by directors or management.

Where there is uncertainty about which policy may respond, more than one insurer may need to be notified.

Cover will depend on the insured parties, activities, allegations and terms of each policy.

Contact our team if you need help understanding how the policies work together.