An overview of management liability insurance. What exactly is management liability coverage? When operating a business, you may be held personally accountable for any actual or claimed Corporations Act violations. And not only giant corporations are at risk; small and medium-sized business owners and executives may also be at risk. The costs associated with defending directors, managers, and workers against any claims resulting from their acts and decisions are covered by management liability insurance. Who should evaluate it? If you are faced with unanticipated liability costs, management liability insurance can prevent the sale of your firm and personal assets, such as your house, to fund the cost of settling claims.