Many company executives mistakenly believe that their company’s umbrella policy covers just about everything they’ll ever need from insurance protection. Axis management liability coverage is a separate issue, however. It can be confusing to consider all the different types of insurance available for your business; it can help to think of your needs as falling under two main areas, each requiring a different type of protection.
Bodily Injury/Property Damage
A business with an umbrella policy has a type of liability insurance, which raises claim limits in cases of catastrophic losses in the dual category of bodily injuries and property damage. The umbrella policy complements other liability policies, which can include general liability or an automobile policy for commercial businesses.
Management Liability Insurance
Axis management liability coverage protects individual officers, directors and other types of managers, as well as the company itself. Claims made against the company and its officers in this category include:
- Management errors and omissions
- Misleading others about company assets
- Misusing corporate funds
- Failure to follow laws
- Lack of corporate governance
- Unfair employment practices
In these cases, the claims are financial instead of physical. Management liability insurance protects the personal assets of company officers and board members. This type of coverage applies to all legal costs to defend against the lawsuit, as well as paying for any settlement or award amount.