If you’re a director or officer of a Residential Management Company (RMC) or Right to Manage (RTM) managing a block of flats on behalf of leaseholders, you could be personally liable for decisions you make in your role – even if you’re acting in a voluntary capacity.
That’s where Directors & Officers (D&O) Liability Insurance comes in.
D&O (Directors’ and Officers’) insurance is a type of management liability policy that protects company leaders from personal financial loss if they are sued for alleged wrongful acts, such as negligence, breach of duty, or mismanagement. It covers the costs of legal defence, compensation awards, and regulatory investigations. This insurance is designed to safeguard directors, officers, and other senior management from personal liability arising from claims made by shareholders, employees, regulators, or third parties.
Why do you need it?
Even with the best intentions, managing a residential block comes with legal responsibilities. You could face claims from:
Without cover, you could be personally liable – putting your own finances at risk.
D&O Insurance is part of a Management Liability package. This can also include, but is not limited to, Corporate Legal Liability which covers the RMC itself against claims such as breach of contract, regulatory investigations, or employment disputes.
Together, this package offers comprehensive protection for both the individuals running the company and the company itself.
If you’re involved in the day-to-day running of a block of flats, D&O Insurance isn’t just a good idea – it’s a vital safeguard. It ensures that personal liability doesn’t become a personal financial burden.
