Management Liability Insurance UK Explained

In an increasingly complex world, management liability insurance can offer comprehensive cover operating a business

Compare management liability coverage

Ensure your business and senior individuals are protected with a range of covers available under one policy.
Management liability insurance can provide broad and cost-effective cover for D&O, EPL, CLL, and Crime insurance.
Compare protection available for small to medium sized businesses with a maximum turnover up to £100m.

Management Liability Insurance Explained

Compare insurance designed for private companies and limited liability partnerships

Managing a business, you are exposed to legal actions against the company and/or yourself individually. Management liability insurance can offer protection against liabilities and financial losses to protect your business and your personal assets. Below we explain how management liability can protect you and your business.

Management Liability Insurance FAQs

  1. What is management liability insurance?
  2. Who needs management liability insurance?
  3. What does management liability insurance cover?
  4. Why purchase directors & officers insurance?
  5. Why purchase employment practice liability?
  6. Why purchase corporate legal liability?
  7. Why purchase crime insurance?
  8. What additional covers are available?
  9. How to compare management liability quotes?

When making decisions on behalf of an incorporated entity, the management of the company can be held to account. Directors and officers insurance is a key cover provided under management liability insurance.

Plus, there are a number of additional protections that can be purchased under the same policy. Below we take a closer look at the covers available under management liability insurance and some key considerations.

What is management liability insurance?

Management liability insurance is a package policy designed for private companies and LLPs with a turnover up to £100m. The main cover under a management liability policy is D&O insurance, with optional protection for employment practices liability (EPL), corporate legal liability (CLL), and crime insurance
UK management liability insurance explained

Who needs management liability insurance?

Individuals that accept roles as directors, officers and senior managers can be held personally libel. Therefore, purchasing adequate insurance to protect the personal assets of individuals that take leadership roles is important for any business.

Civil, regulatory and criminal allegations made against individuals and/or the company can cause significant distress, as well as being very costly and time consuming.

Management liability claims can arise from a wide range of sources, including regulators, customers, employees, competitors, creditors, shareholders and administrators.

Management liability insurance has not always been purchased by small businesses, but has become increasingly important in a litigious environment to protect against losses the company is unable to sustain.

While having timely access to a quality legal counsel who can advise on the best course of action can make all the difference to resolve any issues.

What does management liability insurance cover?

Each insurer's standard management liability offering can vary, and the terminology may alter, however the broad covers are comparable under the below sections:


D&O Insurance

Employment Practice Liability

Corporate Legal Liability

Crime Insurance

Social Engineering

Additional Covers

Management liability insurance definitions can vary, therfore it's worth considering the terms and features to consider what cover best meets your needs. 

Why purchase directors & officers insurance?

Directors and officers (D&O) is the main cover offered and provides individuals financial protection from civil litigation and regulatory investigations, while acting in a managerial capacity on behalf of the company.

The law generally seeks to protect individuals from personal liability where they have acted in good faith and complied with their responsibilities. However, any director, partner or employee acting in a managerial capacity on behalf of the company that fails to meet their legal obligations can be held personally liable.

Why purchase employment practice liability?

Employment practice liability (EPL) offers financial protection from claims arising from a range of employment disputes (i.e. wrongful dismissal, harassment and discrimination).

Dealing with employees can be highly emotive and if internal procedures aren't followed, you can leave yourself open to successful employment tribunal claims. With greater employee awareness of their rights and how to exercise them, the cost and resource to defend employment disputes can cause significant disruption.

Why purchase corporate legal liability?

Corporate legal liability (CLL) offers the company financial protection from civil litigation and regulatory investigations. The insurance will protect against legal costs in defending allegations and damages.

Corporate legal liability is similar to D&O insurance but will defend claims made against the company as opposed to individuals. Breach of contract, copyright infringement and corporate manslaughter are typically covered. Corporate legal liability can only be purchased in conjunction with D&O Insurance.

Why purchase crime insurance?

Crime insurance offers the company financial protection for the theft of property, money or securities from employee dishonesty or fraud.

Companies with inadequate controls are often the target of sophisticated criminal networks and disgruntled employees. Crime insurance can offer valuable protection against damaging criminal behaviour. Employee theft is the standard cover offered under crime insurance. However, some insurers have expanded this section to include cover for social engineering fraud.

If you would like a better understanding of management liability principles, such as duty to defend or indemnification, please visit liability insurance.

What additional covers are available?

Additional management liability covers can include:

Cyber insurance can protect your business against first and third-party losses arising from security and privacy breaches.

Kidnap and ransom can protect your business against the associated costs with incidents of kidnapping and extortion, potentially offering a crisis management service.

Pension trustee liability can protect individuals while acting as trustees, the sponsoring employer and the pension scheme, against civil, criminal and regulatory proceedings.

How to compare management liability quotes?

At get indemnity we are specialists in management liability insurance. To obtain your quotes please complete our online application and we can typically offer a selection of quotes in less than 48 hours.

There are a number of specialist wholesale insurers that can provide comprehensive cover at competitive premiums. We continue to see downward pressure on pricing with increased competition in the market.

If your business has a low to medium hazard exposure (typically viewed as being financially stable and not operating within a high-risk industry class) competition remains high with improvements in cover and reduced premiums available.

Ensure you continue to purchase the most competitive D&O insurance available with a management liability insurance broker.


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This guide is for information purposes and based on sources which we believe are reliable, the general risk management and insurance information is not intended to be taken as advice with respect to any individual circumstance and cannot be relied upon as such.