When a business has a higher level of management that make the executive decisions, sometimes it can be hard on them. They are the people that are the face of the business, who make the decisions and who it falls back on when something goes wrong. A management team is made up of executives that have the experience and knowledge within the industry, however this does not mean that they are invincible or that people will not turn to them if an incident occurs.

With the decisions that management needs to make, there can be times when the decision that they make does not turn out the way they planned. There may be people that are not happy with the decisions that they have made. Sometimes the decisions can be the wrong one and it can cause concerns for the business and the running of it. If the decisions made have a negative effect on the clients and customers, it can be stressful for the business and the growth of the business.

Management Liability insurance covers these decisions and any negative results that come from them.

Management liability insurance can assist and cover incidents that arise from the decisions that are made. A few of the things that it can cover include:

• Employment: If a decision is made about employment and the decision in turn has a negative effect on the business, you may be able to make a claim through your insurance. This can include incidents such as an employee making a complaint after feeling they were unfairly dismissed, a potential employee making a complaint that they did not receive the position due to personal judgement and having to cover the costs of employees if a decision in regards to the business goes wrong.
• Mismanagement: Mismanagement is something that may happen in a business where there is a management team and employees that work under them. If an employee feels that they have been mistreated and discriminated against, they might put in a complaint. Mismanagement can also extend to management making decisions for the business such as investing, changing directions, and choosing new suppliers. If these decisions have not been made with the utmost thought and knowledge it can have negative effects on the business and be considered mismanagement.
• Theft or damage: If theft to products, office equipment or machinery happens due to the decisions that are made by management, you may be able to make a claim through your insurance for the replacement of these items. This can also extend to equipment or machinery becoming damaged due to ill decisions being made, such as letting an untrained employee use the equipment.
• Financial loss: If the decisions made by management result in a large financial loss for the business you may be eligible for compensation through your insurance policy.

If the incident in question results in needing to conduct an audit or have a legal team hired, you may be able to claim the costs of this through your insurance, along with any compensation that may need to be paid to an employee or supplier.