THIS article is based on our 2005 review and evaluation of the growing private-company management liability insurance market. The products for this market combine several lines of coverage for business-practices risks into a single policy. The products for the private-company market are similar to those available for publicly owned companies, but premium pricing and coverage forms can be quite different. Also, the private-company market is growing faster than the market for publicly owned companies is. It has more carriers and is seeing more innovation.

Most management liability products include directors and officers, employment practices, third-party discrimination and fiduciary liability insurance. To these core coverages, some carriers add one or more of the following: kidnap and ransom, crime, intellectual property liability, miscellaneous professional liability, Internet liability and workplace violence insurance. By having one policy that covers various exposures, the insured is less likely to encounter disputes among carriers. The administrative burden for both insured and carrier is lessened, and premium economies of scale can be achieved.

An insured does not have to buy all the coverages an insurer may offer in a management liability policy. It can pick and choose according to its needs and budget. However, carriers generally require an insured to buy either D&O or EPL insurance to qualify for the combined product.