Most companies look for a comprehensive insurance policy to cover them in case a lawsuit is filed against them. Legal claims may be made by either clients or employees, so omissions insurance for managers is usually a necessary part of a good policy.
Many companies may find themselves involved in a lawsuit that falls between the gaps of their coverage. Problems may arise from disputes over several company issues, ranging from conflicts of interest to the mishandling of funds. Policy gaps may include the following issues.
- Policy limits
- Employee practices
To combat these potential issues, many managers may hire insurance specialists to review their policy in order to identify coverage problems. This may give businesses better overall coverage in case a lawsuit happens.
Omissions insurance may become necessary because managers may accidentally or intentionally leave out vital information for clients or employees. This kind of insurance may offer a layer of protection to keep the company from paying legal fees for a lawsuit, whether the claim is viable or false.
Professional liability may be able to keep a manager, board member, or officer from being held responsible for lawsuits. Having good omissions insurance for managers may be one of the best ways to protect a company from legal claims.