Aon  |  Professional Services Practice
Management Liability

When an executive committee or individual assumes ultimate responsibility for the firm's business operations, these decision-makers are exposed to many of the same liabilities faced by directors and officers of public corporations. We design Management Liability programs to help firms protect their professional partnerships and management members.

Financial Services Group

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We provide clients with the most comprehensive and cost-effective Management Liability coverage available, no matter where in the world they do business.

Most professional partnerships now employ a more corporate, business-like approach to management. When a management or executive committee (or sometimes one individual) assumes ultimate responsibility for the firm's business operations, these decision-makers are exposed to many of the same liabilities faced by directors and officers of public corporations.

We pioneered Management Liability insurance designed specifically for professional partnerships, thereby providing valuable financial protection to professional partnerships and their executive/management committee members.

We have developed and negotiated proprietary enhancing endorsements, as well as manuscript policies, that recognize the unique exposures that professional service firms face. Because each firm's insurance needs are unique, we also work with insurers to further refine individual policies to meet those specific client firm needs.

Our Management Liability insurance policies generally provide:

  • Choice of insured individuals (via schedule) and entity coverage for the firm
  • Coverage for claims made by partners against the firm’s management
  • Coverage for certain partnership agreement disputes
  • Breach of contract coverage for Insured individuals
  • Coverage for third party claims arising out of business decisions made by partners and officers
  • Coverage for formal civil, criminal, regulatory, or administrative proceedings, as well as (in some cases) formal investigations
  • Coverage for civil, arbitration, or mediation proceedings
  • Treatment of loss includes punitive and exemplary damage awards (where insurable)
  • Coverage for created or acquired entities, subject to a headcount or asset threshold
  • Choice of defense counsel
  • Coverage for multi-national risk exposures

We can combine Management Liability with Employment Practices Liability to create a cost-effective sphere of "executive protection" for the management of the firm subject to a single retention and limit with one insurer.

Our dedicated claims counsel and claims collection specialists have over 25 years of experience. We maintain active relationships with insurance company senior management, product line managers, line underwriters, and claims professionals to ensure appropriate points of access for our clients and, most importantly, responsive and timely claims resolution.

Side A Personal Asset Protection

A firm's financial impairment or other inability to meet or accept indemnity obligations can result in personal liability to partners, shareholders, or other senior management of the firm. When other insurance policies do not afford coverage and the firm cannot indemnify, Side A coverage may be the only insurance a senior executive, partner, or shareholder has to protect personal assets.

Side A excess policies cover an individual insured’s non-indemnified liability. Personal asset protection is triggered if the firm becomes financially insolvent, cannot otherwise indemnify, or refuses to indemnify an insured and there is no underlying insurance to cover the claim. These policies typically also provide difference in conditions coverage that may include broader terms and conditions that may drop down below its stated attachment point in the event of a non-indemnifiable claim.

We are a global leader in providing Side A coverage to professional service firms arranged as partnerships and corporations.