Buildings insurance protects the building. D&O protects the directors. Limited company status does not protect directors personally from breach of duty claims. Most directors assume "we're covered". They are not. This is the gap that gets missed.
A director of an RTM or RMC can be sued for breach of duty by a leaseholder, breach of statutory duty by a regulator or member, mismanagement of funds by HMRC, or discrimination by a contractor. Limited company status protects company assets, but the director's personal assets (home, savings, pension) are exposed unless the director has D&O insurance. D&O is a separate annual policy held in the company's name. It protects the directors and the company. It is not bundled with buildings insurance or the managing agent's professional indemnity.
Limited company does not shield directors from personal liability claims. Claims for breach of duty, statutory breach, or mismanagement can be enforced against director's personal assets.
Leaseholders (breach of trust), members (breach of duty), contractors (discrimination), regulators (statutory breach), HMRC (tax failure). The exposure is wide.
Annual premium depends on block size, reserve fund, and claims history. Recoverable through service charge in almost all leases.
What good looks like. An annual D&O policy arranged in the company's name, naming all current directors and covering RTM or RMC exposures (breach of duty, statutory breach, mismanagement). Cover limit matched to block size and risk profile (GBP 500k to GBP 5m depending on risk). Tail cover (run-off) extending 6 years after a director steps down. Policy held in trust for leaseholders if the lease requires it. Cost recovered through service charge. Documented in the year-end accounts.
Pick the one that matches you.
Most common. The block has been operating without D&O insurance. The directors are personally exposed. You want to close the gap without delay.
Some managing agents offer D&O as part of their bundle. This is good, but you must verify the policy actually covers your directors and your block's exposures.
Some blocks have a historic D&O policy arranged years ago, but the cover limit is now inadequate for the block size or reserve fund. A GBP 250k limit on a large block with a GBP 500k reserve fund is under-insured.
Enter your block profile. The output recommends a cover limit and indicative annual premium range.
All figures are indicative ranges based on published rates checked April–May 2026. Always compare three written quotes for your specific building. Last reviewed for accuracy on the page legal-check date shown above.
For D&O you want a BIBA-accredited broker who specialises in RTM and RMC blocks. Independent brokers who understand the exposures of self-managed buildings are essential.
D&O insurance is a service charge expense in almost every lease. It is the cost of arranging and managing the company that runs the block (like professional fees, audit costs, or bank charges). Include the annual premium in the service charge budget for the relevant financial year. Recover it the same way you recover all other management expenses.
No. Section 20 LTA 1985 applies to "qualifying long-term agreements" over 12 months and costing more than GBP 100 per leaseholder per year. D&O insurance is an annual policy (12 months or less) and costs GBP 200 to GBP 3,000 total (rarely exceeding GBP 100 per leaseholder per year even in large blocks). It does not trigger Section 20 consultation. Always double-check with your accountant or managing agent, but the standard position is that it is recoverable as a routine management expense.
Include the D&O premium in the year-end accounts and AGM papers so leaseholders are aware cover is in place. This is transparency and good governance. Note it in the narrative to the accounts as a director liability cover. If leaseholders ask why they are paying for it, the answer is straightforward: directors are personally exposed, and D&O protects the company and its leaseholders from director liability claims.
If your lease says management expenses must be "properly incurred" but is silent on D&O specifically, D&O is still recoverable under the ordinary meaning of "expense incurred in managing the company". If your lease explicitly excludes insurance or prohibits it, take legal advice before acting. This is rare.
Use the calculator above to estimate your cover limit. Then approach 2 to 3 BIBA-accredited brokers using the draft email. The whole process takes 2 to 4 weeks from first contact to policy in place.