Management Liability Insurance provides coverage for the indemnification claims and lawsuit defense costs incurred as a result of the request made from the board members, managers, and company employees acting as a manager or as an auditer of the company and its affiliated companies for the compensation of damages which may occur as a result of their error or omissions while performing their duties.
The administrative monetary penalties levied on such insured individuals can also be included in the insurance scope with an additional clause. The indemnification claims of third parties who incurred loss as a result of their failure to fulfill their obligations due to the insuree’s fault, negligence and mispresentation, breach of duty and all other wrongful acts and omissions are paid within the scope of the policy. This insurance policy is effective only in Turkey but in the entire world.
Who are the insured parties?
- The board members (including independent board members), managers and directors, any company employee acting as a manager or an auditor of the company and its affiliated companies,
- The risk manager of the policy owner or the company employee with an equivalent authority,
- The board members, managers, directors, employees of the affiliated companies of the company who are employed within the contract period,
- The board members and managers working in a non-affiliated company (an external institution) pursuant to the company’s special instruction and request.
Who can hold the managers responsible?
• Shareholders and partners,
• Bank and other creditors,
• Company employees,
• Governmental authorities and public institutions,
• Liquidating officers,
• Competitor companies,
• Creditors and all other third-parties.
* Management Liability Insurance is offered by Zurich Insurance Company. Please contact with the TEB Branch nearest to you to purchase this insurance.