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Directors and Officers Liability insurance provides protection for the directors and officers of a company, for claims against them for wrongful acts, committed solely by reason of their acting as a director or officer of a company


Directors and officers liability - residents associations

Residents of a block of flats or residential property may have a formal Residents Association or Residents Management Company. This may be to oversee the maintenance and upkeep of the property, but in some circumstances may also involve legal and financial matters concerning the property.

The members of the organization or company may act as director, company secretary, trustee, non executive director or other similar role.

Individuals in such positions accept responsibility for directing its affairs, ensuring that it remains solvent, and is meeting the aims for which it was established.

In undertaking such roles, individuals are potentially placing their personal assets at risk if an allegation is made where they have failed to use reasonable skill and care when fulfilling their duties. In such cases, even when successfully defended, significant legal fees may still be incurred.

Anyone who takes on such a position in a Residents Association or Residents Management Company should consider the need for Directors & Officers insurance.


What the policy includes

  • Cover for legal costs, expenses and any civil damages awarded against you.

  • Reimbursement to the company if it pays out to protect you.

  • Broad definition of ‘insured person’, including employees acting in a managerial role.

  • Automatic cover for spouses, heirs and legal representatives named in proceedings.

  • Legal representation expenses.