Subsidiaries (Former & New) (Management Liability)

Subsidiaries are entities the insured company controls. This usually means owning most voting shares, or having the power to appoint the board. Management Liability policies usually give automatic cover to subsidiaries that exist when the policy starts, and to new subsidiaries bought during the policy term. This cover often has limits, such as caps on asset value or revenue. Former subsidiaries were subsidiaries before the policy term, but have since been sold or wound up. They may get run-off cover for wrongful acts from their time as a subsidiary. Cover for new subsidiaries often needs notice to the insurer within a set time, commonly 60 to 90 days, and big acquisitions may need extra underwriting review. Corporate groups should understand this cover, so that every entity and its managers stay properly protected.

Subsidiaries are entities the insured company controls. This usually means owning most voting shares, or having the power to appoint the board. Management Liability policies usually give automatic cover to subsidiaries that exist when the policy starts, and to new subsidiaries bought during the policy term. This cover often has limits, such as caps on asset value or revenue. Former subsidiaries were subsidiaries before the policy term, but have since been sold or wound up. They may get run-off cover for wrongful acts from their time as a subsidiary. Cover for new subsidiaries often needs notice to the insurer within a set time, commonly 60 to 90 days, and big acquisitions may need extra underwriting review. Corporate groups should understand this cover, so that every entity and its managers stay properly protected.