Management Liability Insurance protects you and the company against the risks and exposures of running the company (ie your liability for mismanagement).
Without adequate protection you could risk losing, not only your business, but also your personal assets. This insurance protects you personally, and therefore your wealth and lifestyle.
The legal costs to defend allegations of wrongful acts alone can be financially crippling for businesses and individuals.
What does Management Liability Insurance cover? Damages and claimant costs awarded against you; defence (ie legal) costs; investigation costs; civil fines & pecuniary penalties.
Claim examples: Unfair competition; fraud/breach of fiduciary duty, misappropriation of trade secrets, insolvent trading, manslaughter.