Does D&O insurance provide cover if my company goes insolvent?

Yes, D&O insurance is particularly valuable in insolvency situations. If your company becomes insolvent, it cannot indemnify you, leaving your personal assets exposed. D&O policies, especially the Side A coverage, are designed to protect directors in these circumstances for covered claims, subject to underwriting criteria and terms.

Is Directors and Officers insurance a legal requirement in the UK?

No, D&O insurance is not a legal requirement for UK companies. However, given the significant personal liabilities directors face under UK law (e.g., Companies Act 2006, Insolvency Act 1986), it is considered a critical protection for directors and officers.

What's the difference between D&O and Professional Indemnity (PI) insurance?

Professional Indemnity insurance covers the company for claims arising from professional negligence in the services it provides to clients. Directors and Officers insurance protects the individual directors and officers for claims arising from their management decisions and actions in running the company. They cover different types of risks.

Can a director be held personally liable for health and safety breaches?

Yes, under the Health and Safety at Work etc. Act 1974, directors can be held personally liable for health and safety breaches if they are found to have consented, connived, or neglected their duties. D&O insurance cover may be available for the defence costs associated with such claims, subject to underwriting criteria and terms.

What impact does the Senior Managers and Certification Regime (SMCR) have on D&O for regulated firms?

For FCA-regulated firms, SMCR significantly increases personal accountability for senior managers and directors. While D&O doesn't cover uninsurable regulatory fines, cover may be available for defence costs and compensation for civil claims or investigations arising from alleged breaches of SMCR duties, making it even more vital for those individuals, subject to underwriting criteria and terms.

Directors and Officers Insurance UK: What Company Directors Need to Know in 2026

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