Cover type · Directors and Officers

Directors and Officers insurance (D&O) — UK 2026 guide

Reviewed by Apex Insurance Brokers · Published 15 July 2026

D&O insurance protects directors and officers personally against claims arising from their conduct in the management of the company. Under Companies Act 2006, directors owe six statutory duties — and breach exposes personal assets. D&O is the standard mechanism to protect directors from that exposure.

The Companies Act 2006 director duties

Directors owe six statutory duties to the company under sections 171-177 Companies Act 2006:

Duty to act within powers. Section 171.
Duty to promote the success of the company. Section 172.
Duty to exercise independent judgement. Section 173.
Duty to exercise reasonable care, skill and diligence. Section 174.
Duty to avoid conflicts of interest. Section 175.
Duty not to accept benefits from third parties / declare interests. Sections 176-177.

Breach of any of these duties creates civil liability. Damages come from personal assets unless D&O responds.

What D&O covers

Defence costs for claims against directors, whether valid or not.
Damages and settlements where director found liable.
Investigation costs for regulator inquiries.
Extradition costs in some wordings.
Insured's post-departure claims via extended reporting periods.

Standard cover levels

£1m limit: sole director / small firm.
£2m limit: standard SME.
£5m limit: mid-size firm.
£10m+ limit: firms with material corporate exposure, non-exec directors, PLC status.

When management liability makes more sense than standalone D&O

For firms with employees and client-fund handling, standalone D&O misses employment-practices liability and crime exposure. Management liability bundles all three at typically 30-40% saving vs three standalone policies.

Rule of thumb: sole practitioners without employees may only need standalone D&O. Firms with 5+ employees typically benefit from management liability.

Frequently asked

Do all UK company directors need D&O?

No statutory requirement. But personal exposure under Companies Act 2006 makes D&O practically essential for directors of any material company.

What does D&O cost?

SME D&O: typically £300-£1,500/year for £1-2m cover. Higher for firms with corporate exposure or PLC status.

Does D&O cover fraud?

No. Fraud and deliberate dishonesty are excluded. Crime cover (separate product or as part of management liability) covers first-party crime losses.

Can non-executive directors buy their own D&O?

Rare. NEDs typically require D&O coverage from the company they serve as condition of appointment. Personal-name D&O possible but expensive.

What about run-off cover for retiring directors?

Extended Reporting Period (ERP) extension covers post-departure claims. Standard 6-year ERP. Longer available.

D&O by topic

The mechanics that decide whether a policy responds. Pick the question you're facing:

Ready to look at D&O cover?

Our online proposal takes about ten minutes — you can save and come back any time, and a broker reviews every submission personally. Prefer to talk it through first? Call 0117 325 0027.

Start your D&O proposal →