Directors and Officers Insurance
How D&O Insurance Protects Your Leadership Team
Directors and Officers insurance provides personal protection for the people responsible for running your business.
If a director or senior manager is accused of making a poor decision, breaching their duties or mishandling a situation, this cover helps you with the cost of legal representation, investigations and any settlements that follow.
Small and medium-sized businesses can feel the impact of a claim quickly, particularly when a few individuals carry most of the leadership responsibility. Complaints may come from employees, investors, regulators, customers or other parties with issues such as governance, financial decisions or oversight — even a genuine mistake can create unexpected legal pressure.
D&O insurance is relevant to limited companies across many sectors, from professional services and property firms to retailers, start-ups and growing tech businesses. By protecting the personal finances of directors, it enables the organisation keep going and gives leadership the confidence to make decisions without worrying about personal liability.
Behind every policy is an FCA-authorised insurer, ensuring the protection you receive meets strict regulatory expectations.
Why Choose This Cover?
D&O insurance helps protect directors and senior managers from personal financial loss when their decisions come under scrutiny. It reduces the personal risk carried by leaders, supports organisational stability during disputes or investigations and can make the company more attractive to investors, board members and senior hires. You will meet regulatory expectations and protect leadership time, allowing day-to-day operations to continue with fewer interruptions.
Choosing a Limit
How much D&O cover you need depends on the nature of your business. Your sector, company size, leadership responsibilities and the level of scrutiny from regulators or investors all contribute to the amount. Businesses with external shareholders or more complex agreements often choose higher limits because the cost of a claim can rise quickly. If you’re unsure, we can look at your risk profile and the types of situations that could lead to a claim, helping you choose a limit that reflects the potential impact of a serious allegation.
What’s Included in Our D&O Cover?
Claims relating to management decisions
Protection for allegations of breach of duty, mismanagement, poor oversight or mistakes in documentation.
Defence and investigation costs
Legal fees, representation and expert support during claims or regulatory enquiries.
Claims brought by employees, shareholders or regulators
Cover when leadership actions are challenged by internal or external parties.
Company reimbursement options
If the business pays defence costs on behalf of directors, the policy can reimburse the organisation.
Intentional wrongdoing
If a director acts deliberately or breaks the law, the policy will not provide protection for those actions.
Issues already known before the cover begins
Problems or potential claims that existed before the policy was taken out will not be included.
Mistakes in professional work
Errors made while delivering services to clients will be handled under professional indemnity insurance rather than D&O.
Injury or damage to property
Claims involving physical harm or damage to belongings require separate liability cover, as they sit outside the scope of D&O insurance.
Why Icon Risk
✓ Guidance that helps directors and senior teams make informed decisions
✓ Fast quotes and excellent customer service
✓ Direct contact with brokers who deal with SME risks every day
✓ Clear explanations of how your cover works
✓ Policies arranged only through FCA-authorised insurers
✓ Options that fit early-stage companies as well as long-established firms
✓ Support whenever your role or business structure changes
✓ Claims handled with regular communication and a clear plan of action
✓ A practical approach to risk that keeps things manageable
FAQ’s
Who is protected by a D&O policy?
It generally applies to directors, senior managers and anyone who has authority to make decisions on behalf of the company.
Do small businesses actually need D&O insurance?
They often do. Many claims stem from everyday situations such as employee complaints, financial decisions or administrative errors rather than major corporate failures.
Does the cover apply to former directors?
Yes. If the situation being investigated relates to something that happened while they held their role, the policy can still respond, provided cover was in place at the time.
Do personal shareholdings affect cover?
Sometimes. Certain exclusions may apply when someone holds a significant stake in the company. We can walk you through how this works for your setup.
Are fines or penalties included?
Only in situations where the law allows it. Some regulatory penalties cannot be insured under UK legislation.