As a business executive, you do more than run your company; you also have to deal with the legal complexities arising from your firm’s business practices. Before potential legal issues turn into lawsuits against you or your firm, make sure you’re adequately covered by talking to a management liability insurance specialist. If you’re a board member, a director or an officer of the company, you could find yourself facing a business-related lawsuit whether you work for a private, public or non-profit organization. Management liability insurance works by helping you cover the costs of defending yourself against the legal filing and by paying out some or all of any judgments, settlements or damages issued against you.
When your firm finds itself dealing with a lawsuit, it’s possible that, as an executive, the list of defendants includes your name. If your company has not indemnified you within the Corporate By-Laws, then you face the possibility of having to defend yourself and pay any resulting damages out of your own pocket. Management liability insurance covers these costs and helps to protect your individual assets when you’re the target of legal action. A qualified management liability insurance specialist has the skills and training to help you choose the right liability insurance for your situation.