Do you have Management Liability Cover?

When it comes to Management Liability cover, it is important to understand that these policies will typically contain a “Confidentiality Clause”. So what does this mean to you, the insured? And why is it included in policy wordings?

According to Steadfast, the intention of this clause is to “keep the existence of such insurance to only those who are legally entitled to know about it and / or are approved by the insurer”. Disclosure of such information to others may place the insured in breach of their policy. As many insurers see it, informing others of what cover is in place exposes the insured to potentially be held to the maximum limits of their policy in the event of a claim, as opposed to assessing the claim for it’s true worth. Failure to keep the terms & limits of the Management Liability cover confidential may result in the cover being deemed null and void by the insurer if legal action were to take place.

Remember: Management Liability insurance is designed to protect you, your business and your personal assets.

Certificate of Currency

Unlike other types of insurance, it is important to note that insurers will not issue a Certificate of Currency to you, the insured, when a confidentiality clause is in place. This is to protect both you and the insurer from potentially breaching the terms and conditions of the policy.

Examples of Confidentiality Clauses from Insurer Policy Wording Documents:

CGU Insurance – Policy Wording

6. Confidentiality

You shall not disclose to anyone whether natural or corporate the nature of any liabilities covered by this Policy nor the premium specified in the Policy Schedule unless required by law.

CHUBB Insurance – Policy Wording

XXVI – Confidentiality It is a condition of this policy that each Insured and/or any persons at their direction or on their behalf shall not disclose the existence of any Coverage Section, its Limits of Liability, the nature of the liability indemnified, or the premium payable under it to any third party except to the extent that:

(a) they are required by law to do so; or

(b) the Company consents, in writing, to such disclosure.

Vero Insurance – Policy Wording

10.6. Confidentiality

The Insured must not disclose the existence or terms of this Policy, including without limitation the Limit of Liability, the nature of the insurance or the premium payable under the Policy to any person who is not an Insured except where:

(a) the Insured is required by law or stock exchange rules to do so; or

(b) the Insurer provides its prior written consent to such disclosure.

ANSVAR Insurance – Policy Wording

5. Confidentiality

Neither you nor an insured person shall disclose the nature of the liabilities covered by the policy or the premium specified in the policy, unless required by law.

Would you like assistance with your management liability insurance requirements? Contact us.