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We compare management liability cover from leading UK insurers
What Is Directors & Officers / Management Liability Insurance?
Directors & Officers (D&O) / Management Liability Insurance protects company directors, officers and senior managers against personal financial loss arising from claims made against them in their managerial capacity.
In the UK, directors can be held personally liable for decisions relating to employment, health & safety, data protection, financial reporting and regulatory compliance. Management liability insurance ensures that legal defence costs and compensation are covered.
Why Directors & Managers Face Personal Risk
Limited liability does not protect directors from personal claims. Claims can be brought by employees, shareholders, regulators, creditors or third parties.
- Employment tribunal claims
- Breach of directors’ duties
- Health & safety prosecutions
- Data protection and GDPR allegations
- Regulatory investigations
What Does Management Liability Insurance Cover?
- Directors & officers liability
- Employment practices liability
- Legal defence and investigation costs
- Compensation awards and settlements
- Health & safety defence costs
Employment Practices Liability
Employment-related claims are the most common cause of management liability claims for UK businesses, including offices and shared workspaces.
- Unfair dismissal
- Discrimination and harassment
- Wrongful termination
- Breach of employment contract
- Failure to follow HR procedures
Who Needs Management Liability Insurance?
- Company directors and officers
- LLPs and partnerships
- Office-based SMEs
- Serviced office and co-working operators
- Businesses employing staff
Choosing the Right Level of Cover
Management liability limits should reflect the size of your business, number of employees and regulatory exposure.
- £250,000–£500,000 for small businesses
- £1 million+ for growing companies
- Higher limits for regulated industries
- Consider employment tribunal exposure
- Balance cost vs personal risk
As directors, we wanted peace of mind that our personal assets were protected. Insure24 explained everything clearly and arranged the cover quickly.
Director – UK Office-Based BusinessFREQUENTLY ASKED QUESTIONS
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Does limited liability protect directors personally?
No. Directors can still be personally liable for certain claims,
including employment, regulatory and breach of duty claims.
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Is management liability insurance mandatory?
It is not legally required, but it is strongly recommended
for any business with directors or employees.
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Does this cover employment tribunal claims?
Yes. Employment practices liability is a core part of
management liability insurance.
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Does it cover regulatory investigations?
Yes. Most policies include cover for defence costs
arising from regulatory investigations.
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How quickly can management liability cover be arranged?
In most cases, cover can be arranged quickly,
often within the same working day.
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Does limited liability protect directors personally?
No. Directors can still be personally liable for certain claims,
including employment, regulatory and breach of duty claims.
+-
Is management liability insurance mandatory?
It is not legally required, but it is strongly recommended
for any business with directors or employees.
+-
Does this cover employment tribunal claims?
Yes. Employment practices liability is a core part of
management liability insurance.
+-
Does it cover regulatory investigations?
Yes. Most policies include cover for defence costs
arising from regulatory investigations.
+-
How quickly can management liability cover be arranged?
In most cases, cover can be arranged quickly,
often within the same working day.