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What is management liability (directors and officers) insurance?

Traditionally known as directors & officers insurance, management liability insurance provides protection to your company and its leaders if they are accused of any wrongdoing relating to their daily duties as a director, officer or partner of your business.

Being among the most senior people within a business, your decisions naturally have a very widescale impact. However, many business leaders may be unaware that they can be held personally liable for the business decisions they make. In this instance, it could be your own finances – not your business’- on the line.

Why is management liability insurance so important?

As a business leader, not only are your personal assets at risk in the event of a claim made against you, but personal liability is unlimited – meaning no cap on what you might be liable to pay out of your own pocket to settle a claim. Leaving yourself unprotected is a very dangerous line to walk, that can lead to disastrous financial and reputational implications for both you and your business.

NFP can source management liability insurance that offers you vital protection, by:

  • Covering expensive legal fees
  • Supporting you with expert advice
  • Compensating the aggrieved party (or parties) if necessary


of UK SME's now have management liability (directors and officers) insurance 

Research and Markets


SMEs racked up over £60m in management liability (directors and officers) fines in 2021

Clyde & Co


of SMEs have made a claim on their management liability insurance policy as a result of the COVID-19 pandemic

Research and Markets

NFP are a management liability (directors and officers) insurance partner you can trust

Our management liability insurance professionals will use their expertise, connections and experience to provide you and your business with holistic, forward-thinking solutions that are right for you.

Listen to your needs

We will take the time to listen to and understand your management liability insurance needs, no matter how routine or complex, and help to deliver cover that aligns best with what you’re looking for.

Understand your goals

At NFP, we understand that no two businesses are the same and that you will have your own specific needs and aspirations. Our experts are here to design a fully integrated approach to risk management, with your goals in mind.

Create better outcomes

We’re serious about delivering on our promise to you. Our claims team will be here to help you achieve a fast, stress-free resolution to make sure your business is supported, should the worst happen.

Who do we support with management liability insurance?

The reality is that many firms and directors are dismissive of this type of cover. They’re confident that they know what they're doing and therefore don't ever see such a situation happening to them. “Why would I need that type of insurance? I'm brilliant at my job”.

However, no matter the size or power of an organisation, a claim made against a director or officer can be incredibly costly to deal with alone.

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In the UK, smaller companies are exposed to the same level of legislation as larger corporations. Incidents and accidents can happen anywhere regardless of business size, and they’re treated exactly the same by authorities across the board. At NFP, we understand the damage a claim can do to a company with insufficient protection, which is why we’re on-hand to help protect you and the future of your business.

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Large corporations

To put it simply, the larger your business, the greater the scope for something to go wrong. Bigger companies could naturally be seen as having more to lose, including potentially much heavier fines and a more notable name and reputation to tarnish.

Frequently asked questions about management liability

This depends on the policy you select. Policies with a recent inception date will only cover claims based on events that occur from that date onwards, however some policies can have a much longer – or even endless – retroactive date, which will cover claims relating to more historic incidents. These considerations are something that an experienced broker like NFP will take in to account, which is why selecting the right partner is so important.

Whilst your company may have enough financial resources to settle any legal claims, many cases - for good legal reasons - cannot be dealt with at a corporate level. In these instances, the buck stops with your company leaders personally, so management liability insurance is vital to protect them and their personal finances.

Without cover it is unlikely that you will be able to personally afford the cost of going to court and defending yourself in the event of a claim or allegation, no matter how false or unfounded. In a ‘your word against theirs’ scenario, it is hard to properly clear your name and prove your innocence. We can give you the peace of mind to know that, no matter what accusations may come your way, you have an expert team behind you fighting your corner.