Management liability coverage
for today's executive risks

Management liability insurance is a group of related coverage parts that protect an organization and its leadership against claims arising from management decisions, employment practices, employee benefit plan administration, and financial crime. It typically brings together Directors & Officers (D&O), Employment Practices Liability (EPLI), Fiduciary Liability, and Commercial Crime. Greenwood General places it wholesale for retail agents and brokers serving private companies, nonprofit organizations, and qualifying commercial accounts.

Most management liability programs are built from four coverage parts: D&O for management and governance allegations, EPLI for employment-related claims, Fiduciary Liability for employee benefit plan administration, and Commercial Crime for employee dishonesty and fraud. These may be written standalone or combined into one policy, depending on the account and market. Which parts apply, and the terms of each, vary by form and underwriting.

D&O may respond to claims alleging wrongful acts by directors, officers, and — depending on the form — employees, trustees, and volunteers, including governance decisions, breach of duty, and misrepresentation allegations. Private company and nonprofit D&O can cover both the organization and individual insureds. Broad insured definitions, duty-to-defend arrangements, crisis management options, and additional defense limits may be available, but exact terms vary by policy and market.

Private companies face D&O exposure from investors, lenders, customers, vendors, competitors, employees, and regulators, even without public shareholders. A single management or governance dispute can generate significant defense costs that a general liability policy will not answer. Whether and how a private company D&O policy responds depends on the form, the allegations, and the terms placed, so coverage should be confirmed on each account.

Nonprofits carry management liability exposure from directors, officers, trustees, volunteers, donors, employees, and regulators, and many rely on volunteer boards that expect personal protection. Nonprofit D&O, EPLI, Fiduciary Liability, and Commercial Crime can all be relevant, standalone or combined. Availability and terms vary by organization type, size, and market.

EPLI may cover employment-related claims such as discrimination, retaliation, harassment, hostile work environment, wrongful termination, breach of employment contract, failure to promote, and workplace privacy. Coverage can extend to a range of workers — including part-time, seasonal, temporary, intern, volunteer, independent contractor, and leased employees — but the definitions of insureds and wrongful acts vary by policy. Some claims may be subject to sublimits or exclusions depending on the form.

Wage and hour exposure is treated cautiously. Many EPLI forms exclude wage and hour claims entirely, while others offer only a defense-cost sublimit rather than full coverage, and availability differs by market and state. Brokers should identify wage and hour exposure up front and confirm exactly what — if anything — the form provides, rather than assuming these claims are covered.

Fiduciary Liability addresses claims alleging errors or breaches in the administration of employee benefit plans, covering trustees, directors, officers, and employees acting as fiduciaries. It can respond to plan administration errors and regulatory proceedings, including Department of Labor and Pension Benefit Guaranty Corporation matters. Settlement enhancements and certain fines-and-penalties options may be available, but not every fine or penalty is insurable in every jurisdiction.

They serve different purposes. An ERISA fidelity bond protects the benefit plan itself against losses from fraud or dishonesty and is generally required by law for many plans. Fiduciary Liability, by contrast, protects the fiduciaries and the organization against claims alleging breaches of fiduciary duty or errors in administering the plan. Many organizations carry both, because one does not replace the other.

Commercial Crime may respond to employee theft, forgery, funds transfer fraud, computer fraud, social engineering, loss of money and securities, and — depending on the form — third-party property loss and claim preparation expenses. Coverage is written on discovery or loss-sustained forms, which treat the timing of loss and discovery differently, so form selection matters. Definitions of money and covered property vary by policy and market.

Yes. D&O, EPLI, Fiduciary Liability, and Commercial Crime can be placed as standalone coverage parts or combined into a single management liability policy, depending on the account and market. Combining parts can simplify administration, while standalone placements can offer flexibility on limits and terms. D&O, EPLI, and Fiduciary are commonly written on a claims-made basis, while certain Crime forms are not — confirm the trigger on each part.

Underwriting typically wants a completed management liability application and a company profile — operations, years in business, ownership, employee count, revenue, and assets — plus financial statements for D&O, employment detail for EPLI, benefit plan information for Fiduciary, and crime controls for Commercial Crime. Currently valued loss runs, prior coverage details, and the requested limits, retentions, coverage parts, and effective date round out the file. Submit a risk to get started.