Management Liability Insurance

Protect directors from damaging disputes

Management Liability Insurance

Your business is more likely to be taken to an employment tribunal than have a fire. But you’re more likely to have Commercial Property Insurance than Management Liability Insurance. Cover yourself and your directors so you’re not personally liable for breaches, discrimination or dismissal.

What is Management Liability Insurance?

Traditionally known as Directors & Officers Insurance, Management Liability Insurance protects company directors, senior managers and officers of charities, boards and committees if a negligence claim is brought against them in court or at an employment tribunal. The policy also covers legal action against the company itself – at no extra cost.

It’s the thing you wish you didn’t have to think about, but it’s an essential insurance for any limited company with company directors and senior managers. Management Liability Insurance will cover claims brought against an individual in court, or at an employment tribunal, as well as legal action taken against your company.

As a company director, you can be held personally liable for your actions. With the appropriate cover in place, you, your directors, officers and partners can focus on making the right decisions for your business.”

– Ben Butler, Management Liability Insurance specialist at Macbeth

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Management Liability
Management Liability

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How Management Liability Insurance protects you

A single Management Liability Insurance policy combines three key areas of risk: claims against a company director, claims against your company and costs incurred at an employment tribunal.


In the event of a claim against you or your company, Management Liability Insurance would pay your defence costs and any final settlement or compensation following legal action. It covers claims and disputes such as wrongful trading, tax regulation breaches, sexual harassment and corporate manslaughter.

  • Directors’ or officers’ liability

    Cover for the cost of defending a claim made against any company director or officer.

  • Corporate liability

    Cover for claims made against your limited company.

  • Employment practice liability

    Cover for legal defence costs and compensation awards made by employment tribunals.

  • Cyber risks

    Your cover can include first-party losses such as cyber extortion and fraud and third-party losses such as privacy breaches.

  • Criminal activity

    Optional protection against losses arising from employee theft belonging to you or your clients.

Management Liability Insurance Tips

  • There is more and more scrutiny and regulation around directors’ duties, actions and responsibilities. The Companies Act 2006 contains a list of statutory duties that directors must comply with and if there is a breach, directors can be held personally liable.

  • Management Liability Insurance fills gaps in other cover you might have. For example: 

      • Limited liability status isn’t applicable to a director’s personal assets. 
      • Legal expenses cover can be invalid where a successful defence is unlikely.

  • Management liability cover extends to anyone who makes a claim against your company including employees, customers, suppliers, shareholders and competitors.

  • Consider extending your cover to include crime and cyber insurance.

Your business is more likely to be taken to employment tribunal than to have a fire.

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