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How Much Does Directors & Officers Insurance Cost? UK Guide

director in an office environment

When running a small business, it helps to know how much Directors and Officers Insurance could cost. This type of cover is there to protect your business leaders, such as directors, managers, or board members, if they face legal actions.

We look at what affects the price of this insurance, what kind of cover it may provide, and why it can offer peace of mind for businesses of all sizes.

What Is Directors and Officers Insurance?

Directors and Officers Insurance (D&O Insurance) is a type of cover that protects named people in a business. The design helps pay insurance claims if someone claims a director or manager did something wrong at work.

D&O insurance offers:

  • Financial protection against legal actions
  • Cover if a claim arises from mistakes or bad decisions
  • Support for personal liability linked to management roles

This is not the same as professional indemnity insurance. That type of insurance protects against mistakes in services, not decisions made by leaders.

What Can Directors and Officers Insurance Cover?

D&O Insurance can cover a wide range of risks linked to running a business. These could include:

  • Claims of professional negligence
  • Breach of duty or trust
  • Mistakes in financial reporting
  • Claims by shareholders, employees, or regulators

It helps protect your business leaders when their choices are questioned. The right level of cover depends on the size and type of business.

What Affects the Cost of D&O Insurance in the UK?

The amount of cover and the cost depend on:

  • Type of cover chosen
  • Business size and turnover
  • Industry risks
  • Number of directors or officers
  • Claims history

Some industries may face more risk. For example, finance or property businesses may need a higher level of cover.

Typical UK Pricing for D&O Insurance

Prices for Directors and Officers Insurance can vary. Many UK policies start from around £250 per year for small firms. For larger firms, or businesses with more risks, prices could be much higher.

For example:

  • A small business with low risk may pay between £250 and £500 per year.
  • A medium firm could pay between £500 and £2,000 per year.
  • Large businesses may need bespoke quotes, with higher costs.

The exact price depends on the amount of cover and the business profile.

Does D&O Insurance Include Public Liability or Professional Indemnity?

No, D&O insurance is separate. It does not replace public liability insurance or professional indemnity insurance cover.

  • Public liability insurance helps if someone outside the business gets injured or if someone damages their property.
  • Professional indemnity insurance helps if a business gives wrong advice or makes a service mistake.

All three types may be needed together to fully protect your business.

Why Work with a Broker to Arrange D&O Insurance?

Brokers help match your business insurance needs with the right policy. We support clients by:

  • Finding the right type of cover
  • Helping set the correct level of cover
  • Comparing prices from different insurers

This could save time and help make sure the business and its leaders have the right financial protection.

Helping UK Businesses Find Peace of Mind

Directors and Officers Insurance can help business leaders manage risk confidently. Choosing the right amount of cover provides peace of mind that key people are protected if a claim arises.