Learn more about management liability insurance Houston, TX from Texas Insurance Agency. We are a team of insurance brokers whose sole aim is to help our clients get the coverage they need to succeed. Having the right insurance plan is like having a sturdy safety net. Having a randomly selected plan won’t suffice – you’ll want one that covers all of the business’s assets and protects you from financial ruin.
What is management liability insurance?
Also often called Directors & Officers (D&O) liability, management liability insurance protects the board of directors, officers, and managers of a business from claims that may come up because of the choices and actions they took while doing their jobs. It helps protect both the leaders’ personal assets from being sued and the company from having to pay back the costs.
Who will benefit from this type of insurance?
Anything from small non-profits to large privately held businesses and even public companies can benefit from it. It might be especially helpful for companies with boards of directors or advisory groups, owners who don’t handle day-to-day tasks, or companies that have to answer to regulators.
If you’re not sure if management liability insurance is the right fit for you, you only need to ask the insurance experts. You can rely on Texas Insurance Agency to help you find everything you need to protect your business’s finances. We can help you determine whether or not D&O insurance is the right choice and suggest alternatives if it isn’t.
Rather than worrying about something happening, it’s always better to gain peace of mind with the right insurance coverage. Texas Insurance Agency can help you find the right plans. Contact our office today to schedule a meeting or get started with a free quote.
The Ins & Outs of Management Liability Insurance Houston, TX
Members of the board of directors and officers can get management liability insurance in case someone sues them while they are on the board or as an officer. The protection covers the cost of defense and any money lost. It’s basically a way for corporate directors and officers to protect their own assets in case they are sued by employees, vendors, rivals, investors, customers, or other people for real or alleged wrongdoings while running a business.
D&O insurance does not cover acts of intentional illegal acts, harm to people, or property damage. However, it does include claims that come from bad business choices made by managers, problems with hiring and firing, actions taken by shareholders, mistakes in reporting, wrong or incomplete info given to shareholders, poor corporate management, misusing company funds, and breach of tax duty.
This type of insurance isn’t usually mandated by law, but it can protect businesses of all shapes and sizes in important ways. This is because directors and officers can be held personally responsible for the decisions they make as managers. If you work in an industry where one mistake can cost your clients a lot of wealth, you’ll want to protect all bases. Getting management liability insurance can protect your managing staff from financial harm.
Directors & Officers v. General Liability Insurance
Management liability insurance is different from general liability insurance in what it covers and how it works. Directors and officers of a company are protected by D&O insurance, which pays for their defense costs and damages in cases and claims about their actions and decisions as directors and officers. General liability, on the other hand, is a broad type of insurance that covers general business risks and lawsuits.
This type of insurance generally covers damage or injury to property, like if a customer slips and hurts themselves at your business or if your product is defective and someone gets hurt. Businesses may be able to keep running while dealing with real or fake acts of this kind. It covers the legal fees that come with the claims covered under these insurance plans.
In a broad sense, liability insurance is a type of risk financing that protects the buyer (the “insured”) from the risks of losing money because of lawsuits and other claims. It also protects the insured if the buyer is sued for claims that are covered by the insurance policy. Whether you’re a small or large business, having some type of liability insurance is a good move. Texas Insurance Agency can help you figure out which ones are the best for you.
Protecting Your Business with the Right Business Insurance
Choosing the right type of insurance for a business depends on the type of business, the market it’s in, and the risks that could happen. These things need to be carefully looked at to figure out what kinds of covering are needed. Discussing the details with an experienced insurance expert can ensure that you protect all of your business assets. Different factors affect what coverage you need, including the following:
- The type of business
- Regulations for the industry
- Business size and structure
- Location of the business
- Number of staff and workers
- Assets and inventory
When choosing the right insurance coverage for a business, it’s highly suggested that you talk to an expert insurance broker or someone similar. To make sure the business isn’t under or over-insured, they can help figure out how much risk there is and match it with the right coverage.
Let’s Get Started
Management liability insurance is only the tip of the iceberg. Your managing staff is only one gear in the entire machine. You’ll want insurance to protect all the gears in case something goes wrong that affects your entire business. Rather than facing financial ruin because a fire destroys your building, a lawsuit comes in against one of your products, or a poor decision leads to your shareholders seeing you, insurance can protect your bottom line.
Texas Insurance Agency can help you find the right insurance. Call our office to schedule a meeting or get a free quote. Any of our locations, including our Houston office, are ready to assist you in finding the right kind of management liability insurance.
Houston, Texas Fun Facts:
- The Energy Corridor is home to over 300 companies.
- It got its name because many energy companies have their regional HQs stationed here.
- A few companies include Shell, BP Amercia, and ExxonMobil.