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Guide to insurance for Directors


Whilst carrying out your duties as a director, you face a number of risks which can be protected against through applicable insurance. The information below summarises the types of cover on offer but should you require a no obligation, personal consultation, don’t hesitate to make contact with any of our preferred insurance providers.

Professional Indemnity Insurance


Professional Indemnity Insurance (also known as PI insurance or indemnity insurance) can help protect you if claims are brought against you by a client due to a problem with work you have done for them. The policy includes cover for negligence, infringement of intellectual property, breach of confidence and defamation.

For whom

  • Individuals and companies of all sizes that provide an advisory service 
  • Businesses with an approved business activity 
  • A range of professions such as: 
    • Accountancy 
    • Business & management consultants 
    • IT consultants, suppliers & software developers 
    • Marketing and media companies 
    • Recruitment consultants 
    • Estate & letting agents 
    • Engineers 
    • Graphic designers 
    • Web designers, and many more


You may feel confident in the quality of your work, but any small business is vulnerable to a claim of negligence when professional advice or services fail to meet a client’s expectations and cause financial loss.

Products available

IoD Professional Indemnity Insurance, provided by Hiscox, is bought by an individual or a company. The industry-specific policies suit the risks you face in your particular industry and are available to a range of professions.



From approx. £15 per month


Scenarios/ case studies


Direct loss claim following the theft of over £80,000 by a manager at an insured retailer. A quick investigation revealed the extent of the thefts, which involved over 300 individual transactions. Costs incurred c.£80,000.


The insured designed packaging for a client biscuit producer. The packaging, unfortunately, was faulty in design and the biscuits could not be held securely within the boxes provided. There was some liability at the client’s side in failing to supervise staff when packing the boxes themselves. Following a negotiation process the claim was settled including the delivery of a new design rectifying the original problem. Costs incurred £15,000.


The insured produced posters for an advertising campaign in London. These appeared on various target transport links and a representative of the client reported that the product was named incorrectly on the posters. The product title had been changed in error by an employee during the design process and it was not spotted in any of the following versions. It was agreed with the insured that an urgent reprint was needed. The claim was settled. Costs incurred £16,000.


A recruitment consultant suffered substantial losses as a result of their Finance Director stealing money in order to fund his gambling addiction. Estimated loss £200,000.


Claim against a managing agent for failure to provide a banister/stair rail in a managed property. The tenant suffered serious brain injury when he fell down the stairs. The claim is expected to run into six figures. 


More info

0800 280 0354

Get an online quote

IoD members save five per cent. 

Five per cent discount is only available via the specific phone number and website listed above, and is subject to underwriting criteria. Cases that do not meet Hiscox’s underwriting criteria may be referred to a Hiscox recommended specialist broker, where the preferential rate will no longer apply. The Institute of Directors is an Introducer Appointed Representative of Hiscox Underwriting Ltd. which is authorised and regulated by the Financial Conduct Authority. For UK businesses only.