Management liability insurance for directors and senior leaders.

Protect your Leaders, your decisions, and your organisation

Insurance Solutions for Management Liability.

Running a business means making tough decisions every day — and even well-intentioned choices can lead to costly allegations. Management Liability Insurance protects the personal assets of directors, officers, and senior decision-makers from claims that could threaten their finances and reputation, ensuring your leadership team can act with confidence.

Get My Management Liability Quote

What Is Management Liability Insurance?

Management Liability Insurance safeguards the people who steer your business — covering directors, officers, and senior managers against personal claims brought against them alleging that they have committed a wrongful act.

When a decision, oversight, or compliance failure results in legal action, management liability ensures that defence costs, settlements, and investigation expenses are covered. It’s designed to protect both individuals and the company from financial harm, allowing leaders to focus on growth and governance rather than litigation risk.

For small businesses, charities, and large corporations alike, this cover is a crucial part of responsible management and good governance.

Typical areas of protection include:

  • Directors & Officers (D&O) Liability

    Covers the personal liability of directors and officers for alleged wrongful acts, such as mismanagement, breach of duty, or errors in oversight. Protection extends to defence costs, investigations, and settlements, ensuring your leadership team isn’t personally exposed when fulfilling their duties. It’s vital for attracting and retaining senior talent who expect adequate protection.

  • Employment Practices Liability (EPL)

    Provides protection against claims made by current, former, or prospective employees alleging unfair dismissal, discrimination, harassment, or breach of employment rights. This includes legal representation, settlement payments, and reputational support. With employment regulations becoming more complex, EPL coverage helps businesses manage HR risks with confidence.

  • Corporate Legal Liability (CLL)

    Protects the business itself against claims of wrongful acts such as contract breaches, data misuse, or regulatory violations. It covers legal defence and compensation costs if the company — not just its directors — faces litigation. This ensures the organisation’s finances are shielded from the costly consequences of legal disputes.

  • Regulatory Investigation Costs

    Covers the expense of responding to investigations launched by authorities such as the FCA, HSE, or ICO. This includes legal advice, document preparation, and representation during interviews or hearings. These investigations can be time-consuming and financially draining; this cover helps manage both the cost and the distraction.

  • Crime and Fraud Cover

    Provides protection against losses from internal or external criminal acts such as employee dishonesty, forgery, or social-engineering scams. It reimburses stolen funds and covers the cost of investigating and rectifying the incident. Even with strong internal controls, fraud can happen anywhere — this policy helps mitigate its financial impact.

  • Shareholder and Stakeholder Claims

    Covers disputes brought by shareholders, investors, or stakeholders who allege misrepresentation, financial mismanagement, or breach of fiduciary duty. It funds legal defence and potential settlements, helping protect both individual leaders and the business’s reputation in sensitive governance situations.

Insights

Read our latest guides around Management Liability Insurance

Guides
Why You Should Consider Becoming a Charity Trustee

Learn why becoming a charity trustee matters: responsibilities, benefits, typical time commitments, and practical ways to find trustee opportunities and get started.

Read More →
Directors & Officers (D&O) Liability Insurance Explained

Directors & Officers Liability insurance protects board members, trustees, and senior leaders from personal liability in the event of claims for wrongful acts. Understand how it works, what it covers, and why every organisation should consider it.

Read More →
The Power of Trustees: Make a Real Difference
Read More →
Understanding Trustee Liability and Indemnity

Trustees face legal and financial risks when managing charities. Learn how Trustees Indemnity insurance provides essential protection and peace of mind.

Read More →

Who Needs Management Liability Insurance?

Any organisation with directors, trustees, or senior decision-makers should consider Management Liability Insurance. Personal claims can arise even when individuals act responsibly and in good faith.

Limited companies and partnerships

Directors and officers can be personally sued for errors or oversights that cause financial loss or regulatory breaches.

Charities and nonprofits

Trustees face personal exposure for governance failures, misallocation of funds, or regulatory non-compliance under charity law.

Professional and membership bodies

Leadership teams overseeing member operations or finances risk investigation if standards aren’t upheld or decisions are challenged.

Family-run or growing SMEs

Smaller firms often lack the financial buffer to defend claims against directors, making this cover vital for continuity.

Start-ups and tech firms

Fast-moving growth, investor scrutiny, and board-level decisions increase exposure to shareholder disputes and employment claims.

Public and private companies

Listed or not, companies face regulatory, shareholder, and employee-driven claims that can reach senior management personally.

“When we faced a complex trustee liability claim, Talbot Jones didn't just handle the insurance side - they understood the governance implications and worked with our charity lawyers to achieve the best outcome. Their sector knowledge proved invaluable.”

Chair of Trustees, National Health Charity

Ready to Secure Your Charity?