3 types of Management Liability for Life Science businesses

Management Liability may be a little known cover option to some, but it’s important to know what it is and how it can protect your business, particularly those within the Life Sciences industry.

The word “liability” seems to be in constant circulation when talking about business insurance. You need to cover your responsibilities for your employees, members of the public, the products you sell or distribute and your actions as a company. That’s a lot of liabilities to consider.

Life Sciences businesses are often particularly vulnerable to legal action – this is due to the high-risk nature of developing medicines, therapies and devices, the harm which a wrong decision could potentially cause, the involvement of regulatory bodies and our increasingly litigious society.

As a business, you might already have your Public, Employers’ and Product Liability in place. Management Liability relates to your actions as a company, covering key individuals as well as the entity of a business for a whole host of issues surrounding decisions, mistakes and wrongful activities.

Because these areas can be so complex, and the legislations around them very specific, a Management Liability policy tends to be split into three levels of cover; Directors and Officers Insurance, Employment Practices Liability and Corporate Legal Liability.

  • Directors and Officers Insurance – The Individual
    Directors, business owners and senior management could take decisions, or make errors, that land them in hot water legally.Accusations of alleged wrongdoings can come from many different sources, including other directors and shareholders, and it can be the individual who is personally held accountable.Directors and Officers Insurance protects them from any large defence or compensation costs, fines or penalties, providing the allegation doesn’t relate to any intentional breaches, such as fraud.
  • Corporate Legal Liability – The Company
    If there is a claim for fraud, and the company comes under fire for the wrongdoings of an employee, then Corporate Legal Liability will cover them for any subsequent legal action.It also protects for other violations, such as trespassing and water contamination, if, for example, a company is accused of causing environmental damage by dumping waste.
  • Employment Practices Liability – The Employee
    So complex are the legislations around employment law that dedicated insurance can certainly show its worth.Employment Practices Liability covers unfair dismissal, sexual harassment, and discrimination among other employment issues. With claims of unfair dismissal so common, it’s not a cover option to be missed off the checklist, as it could save your business from large costs in the longer term.

Safeguard are specialists in Life Science Insurance. To find out more, get in touch on 08456 888 284.