Management Liability
What is it?
Frontier Risk's Management Liability Insurance protects cannabis business leaders from legal expenses and damages arising from their managerial decisions and actions.
Why is it important?
Management Liability Insurance is crucial as approximately 10% of new businesses encounter legal threats or lawsuits initiated by former employees. Research indicates that within a three-year period, over 25% of private companies dealt with a Directors & Officers (D&O) claim. This insurance integrates both Employment Practices Liability Insurance (EPLI) and D&O coverage, providing comprehensive protection for your business against these significant risks.
What does it cover?
Directors & Officers (D&O) Coverage
Protects company leaders from claims alleging mismanagement, breach of fiduciary duty, negligence, or other errors in decision-making.
Employment Practices Liability (EPLI) Coverage
Guards against claims of workplace discrimination, harassment, or wrongful termination by executives and employees.
Why Frontier Risk?
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Common Questions
Management Liability insurance covers claims related to financial mismanagement, including allegations of mishandling funds and fraudulent activities by company executives and managers. This insurance helps protect business leaders from the legal expenses and damages associated with defending against such claims.
Management Liability insurance is customizable to address specific industry risks, including those unique to the cannabis industry. Insurers may offer tailored coverage options to address the particular needs and challenges faced by businesses operating in different sectors, ensuring comprehensive protection against industry-specific risks such as regulatory compliance, product liability, and reputational damage.
Management Liability insurance protects against claims from shareholders as it typically includes coverage for Directors & Officers (D&O). This shields company executives and directors from personal liability arising from shareholder claims alleging mismanagement, breaches of fiduciary duty, or other wrongdoing.