For more on this part of the insurance industry:
Management governance professionals insurance secures individuals who work behind the scenes to help run businesses. These professionals include:
They help boards stay legal, organised and accountable. With real risks across sectors, having the right insurance is a requirement.
If a charity trust is fined because documents are filed wrong, it can delay important funding. The board may blame the hired governance advisor, who might not have insurance.
They could face legal costs and harm to their reputation without proper financial protection. Insurance is the safeguard against this.
Increased board-level responsibility under the UK Corporate Governance Code has made more professionals take out directors and officers (D&O) insurance.
With more meetings held online, cyber insurance is growing to protect private files and board systems. Many professionals now work freelance, so there’s more demand for tailored professional indemnity (PI) cover.
Brokers must assess emerging problems in the management governance professionals insurance sector:
Cyberattacks on board software can leak private data and lead to costly claims. And as roles blur between governance and legal teams, insurance gaps can grow.
It’s up to brokers to look closely at each client’s duties when advising on management governance professionals insurance.
A governance professional supports boards by helping them follow the law, record decisions, and manage risks. They make sure meetings, filings, and policies are done properly.
In this page’s context, a management governance professional is a broader term. It includes governance officers, company secretaries, and consultants who advise on board-level duties.
Yes, non-executive directors (NEDs) should have insurance to shield themselves. Even if they don’t manage day-to-day work, they can still be held legally responsible.
Many NEDs are covered by their company’s D&O insurance. But if they work across several boards, personal cover is often a smart move.
This is where management governance professionals insurance comes in—offering specialised protection for board-level risks.
Some NEDs give advice on governance or sit on several boards. In these cases, they fall under the management governance professionals category and may need added insurance.
Yes, NEDs can be sued for reasons like poor oversight or failing to flag risks. They face the same legal duties as executive directors under UK law.
Claims can come from shareholders, regulators, or even employees. Without D&O insurance, NEDs risk paying legal costs out of their own pocket.
Most directors rely on D&O insurance, but those offering advice or governance services may need PI too. This includes NEDs working as consultants or in multiple roles.
D&O insurance covers board members if they’re sued for decisions made in their role. It helps with legal costs and claims against them personally.
PI insurance covers mistakes in advice or services, like giving the wrong guidance or missing a deadline. It’s made for professionals who offer support or consultancy.
Both are useful in management governance professionals insurance, as they protect against different hazards.
No, they are different. Management liability often includes D&O cover, while PI is separate and covers service errors.
A board decision claim goes to D&O. A mistake in advice goes to PI. Many professionals need both, based on how they work.
Besides PI, D&O, and cyber insurance, other common options include:
Management governance professionals often need a mix of these, especially if they work across different boards or provide advice as independent consultants.
