Company directors' and officers' insurance

Directors’ and officers’ insurance could protect your position as a director, partner or officer of a company. In such an important role, you’ll have extra responsibilities to your employees, the public, investors and regulators. If a claim is brought against you, you could face disqualification proceedings, prosecution and your personal assets might be put at risk.

Directors’ insurance from Hiscox, also known as management liability insurance, can cover the potential costs of these risks.

Please get in touch with us if you would like to get a quote for directors' and officers' insurance:

0808 2736 570

Mon-Fri 9 am - 5 pm.


Why choose Hiscox for your directors' and officers' insurance?


Insurance you can trust

Our customers rate us 4.8/5 on Feefo based on reviews over the past year, with 3500 total reviews. 


Trusted insurer 

We insure over 400,000 businesses*. We also hold the Feefo Platinum Trusted Service award.

*based on the number of policies sold in 2023


Access to business support

At Hiscox, we do more than just insurance – our Business Support Hub signposts directors to sources of legal support, tax help or investment.

Man in a suit sitting at a table with his hands interlocked

What is directors’ and officers’ insurance?

Directors’ and officers’ insurance, also known as D&O insurance or directors’ liability insurance, is designed to provide financial support for key people within your business if they face allegations of personal wrongdoing.

It works to protect directors, officers, partners and other company leaders in the event they stand accused of a wrongful act, such as:

  • Breach of duty of care
  • Breach of trust
  • Negligent errors
  • Defamation
  • Health and safety failure
  • Causing pollution
  • Mismanagement of pension schemes

It’s there to help with the cost of defending company leaders from such allegations and to support with the losses you might experience as a result of such a claim. Directors’ and officers’ insurance can also help with the financial side of investigations, plus the costs you may incur in attempt to mitigate the need for investigations.

Get a quote for directors' and officers' insurance. Contact us on 0808 2736 570
Mon-Fri 9 am - 5 pm.

Do I need directors’ and officers’ insurance?

You might need directors’ and officers’ insurance if you hold a leadership position within a company, whether your title is partner, director, general manager, officer or something else.

Level of responsibility is a key consideration – if you make the decisions about your company’s protocol or investment, then this type of cover could become relevant if things went wrong.

You may not consider be a central aspect of your role as the director of a small technology firm. However, if a new starter became seriously injured in a workplace accident, your seniority could leave you facing personal charges if the Health and Safety at Work Act 1974 has been breached.

In a similar vein, an employee could opt to sue you as the company director if they claim you mismanaged the administration of their non-defined pension scheme. Even if your name is cleared, an official investigation could impact your reputation – our insurance can help with certain public relations costs.

If you answer to shareholders, then these parties could launch claims against managing directors if they believe your investment decisions lacked due diligence.

How much directors’ and officers’ insurance do I need?

The amount of insurance you’ll need depends on the nature of your business and your role,  as both have an impact on the kinds of risks you’re likely to face.

Company size also matters – holding responsibility for a multi-million-pound organisation could mean potential negligence claims come with higher values attached to them, for instance. Therefore, setting a higher limit of indemnity may be smart if this sounds like you.

We can cover you from £100,000 to £10 million but your policy is personal to you, so we’ll work with you to tailor your directors’ and officers’ liability cover to suit your sector and firm.

What’s included in your cover?

Hiscox directors’ and officers’ insurance can cover you if:

  • You face claims by investors or other shareholders, including directors
  • You face a compensation claim from an employee injured at work
  • You make an error in the administration of a pension or employee benefit scheme and you face investigation from financial regulators
  • You make a statement about a competitor that is incorrect and they take action for defamation
  • You face claims that you breached your duty of care under the Health and Safety at Work Act 1974 or Corporate Manslaughter and Homicide Act 2007

From health and safety concerns to criminal proceedings, there are many ways things can go wrong for directors and officers. Our insurance supports you with the cost of defending or settling legal actions.

When should I get directors’ and officers’ insurance?

As soon as your company has individuals with key responsibilities, such as a managing director, it could be time to consider directors’ and officers’ insurance. This is because such people can face personal action which may come at a cost to them and the company they represent.

Sole traders don’t need this type of cover, because under this arrangement there is no distinction between you and your business. Sole traders will often find other covers, such as professional indemnity insurance and legal protection insurance, are sufficient for their needs.

However, directors’ and officers’ insurance could become relevant if you decide to register a limited company. From the point you become registered you could face personal complaints, criminal proceedings or director disqualification.

Directors’ and officers’ liability cover may become relevant as your company grows – when your business is traded on the stock market, shareholders can register qualms of their own.

However, small businesses can benefit too, since complaints that name individual directors may not be covered by other types of business insurance, such as commercial legal protection or professional indemnity insurance.

How to get a quote for directors’ and officers’ insurance

We understand that the risks to your business are unique. If you want a quote for directors' and officers' insurance, please talk to one of our UK-based insurance specialists. 

You can contact us on: 

0808 2736 570

Mon-Fri 9 am - 5 pm.

Directors’ and officers’ insurance: FAQs

Who pays for directors’ and officers’ insurance?

Directors’ and officers’ (D&O) insurance has become a fundamental aspect of business risk management strategies. So, limited companies often pay for it on behalf of their employees. In these cases, individuals won’t need to purchase it.

Hiscox insurance can reimburse the company for losses it might incur because of a director’s actions.

The product also supports high-responsibility individuals with personal losses they might incur due to extradition proceedings, property handover demands and personal tax liabilities, so sometimes it is purchased as a private expense. However, it’s worth knowing that directors’ and officers’ insurance is classed as a tax-deductible expense (external link) for companies.

What is typical D&O coverage?

Typical D&O or management liability insurance can be hard to specify as each case can be different. At Hiscox, we can cover directors for up to £10 million in costs, for optimal reassurance. 

Each director faces unique circumstances and risks, so deciding how much coverage you might need is personal. You might consider factors such as the size of your business, its risk profile and the level of responsibility you have for the company’s decisions.

Is management liability the same as directors’ and officers’ insurance?

Yes, with Hiscox, management liability and directors’ and officers’ (D&O) insurance are two names used for the same type of product.

What is the difference between E&O and D&O insurance?

E&O stands for errors and omissions cover. This is popular in the US, and provides similar cover to professional indemnity insurance – that is, it protects businesses against complaints about errors. These could be made by anyone within the business, including junior employees. D&O, on the other hand, covers the directors and officers of a business personally, for mistakes they might be individually liable for.

Read more in our glossary of business insurance terms.

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