A question new clients often ask us is: ‘Do I really need Directors and Officers (D&O) insurance?”  We would recommend that you consider it and at least get a quote.

Our claims team has seen cases that run into six figures. When things go wrong, they can go wrong in a big way, and can leave you personally liable for costs, damages and potential unwanted stress.

Being a director of a management company can expose you to personal financial risk.

If you make a decision that causes a financial loss to someone, perhaps another leaseholder or a contractor, you could be held personally financially liable.

The same applies if you fail to comply with some regulations. Whether or not you are aware of them, you could still be personally liable.

Directors & Officers liability insurance can help protect you.  While the likelihood of being held liable is relatively small, if something does happen then the consequences can be serious.  And it is important that you have specialists on your side to help you when you need it most.

Here are a few examples of how Directors & Officers cover can save the day:  

  • A director failed to identify and rectify essential repairs within his block of flats. As a result the lessees saw the value of their property/ investment fall and a lawsuit was filed. The insurers helped defend the client where possible and paid compensation to the disgruntled lessees.
  • A disgruntled employee, working at a block of flats, filed a lawsuit against the limited company for alleged discrimination, suing for compensation. The company used their Directors and Officers insurance to fight the allegations and cover legal costs involved.
  • An independent contractor was appointed by property directors to provide quotes for essential works and improvements. Without consulting the other lessees, the directors instructed the tradesmen to carry out the works. Insufficient funds were available to cover the costs and the Directors were liable for the costs involved.  In such situations, Directors and Officers cover can help mitigate the costs of any claim awarded against you, as well as legal costs.

You can download a copy of our Directors & Officers fact sheet.


The sole purpose of this article is to provide guidance on the issues covered. This article is not intended to give legal advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. We make no claims as to the completeness or accuracy of the information contained herein or in the links which were live at the date of publication. You should not act upon (or should refrain from acting upon) information in this publication without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited trading as Deacon accepts no liability for any inaccuracy, omission or mistake in this publication, nor will we be responsible for any loss which may be suffered as a result of any person relying on the information contained herein.