Directors liability insurance?

D&O insurance is a good idea so your daughter should get quotes.

As for making the other residents directors, she will need to read the lease and Articles of Association to see if they are obliged to become directors. If they are not obliged then she cannot force them.

So 4 leaseholders hold 2 legal interests (1) as lessees under your leases and (2) as share of freeholders the freehold interest in the Man Co. RMC or RTM as shareholder with legal duties under its memorandum & articles.
Article state how many directors and those must have directors liability insurance because they hold liability for proper running of the company and enforcement of your leases.
You need to get the M&A from the managing agent and download from companies house. Look up duties on government department website.

No requirement for D&O insurance, but it seems a good idea, in case a lessee feels the directors have handled something wrongly and take legal action against them.
One block I know is paying £70+IPT – but the broker has recently started charging an admin fee of £70, which I think is a rip-off!
The underwriters are Angel Risk Management Ltd, and they are going to try to go direct at next renewal. (Or, at least, via a less extortionate broker!)

P.S. I don’t understand this about “get the M&A from the managing agent” – it is available online at no cost from Companies House if set up within the last 30 years, but if older it may have been archived and you might have to request (and pay a bit). Also, the M&A should have been supplied to you when you became a member (before you became a director!), and you directors have a responsibility to supply each new member/lessee with a copy.

It says all leaseholders are share of freeholders, but only 2 directors. The insurance premium will be covered under the service charge, but that premium is ridiculously high. Ours was £755 last year… for 5 directors.

Reply to the comment left by NewYorkie at 27/06/2025 – 14:09
The premium which I’m talking about is regardless of the number of directors. That figure from NewYorkie is itself, in my view, “ridiculously high” (at £755 with 5 directors) – UNLESS “included” with the building insurance. So both the O.P. and NewYorkie might do well to investigate Angel Risk Management.

I’d suggest you ring up insurance brokers yourself to get quotes for your building and directors’ insurance. This will give you a clear idea of the costs involved. A common mistake is letting management agents handle these quotes.

Since December 31, 2023, the Financial Conduct Authority (FCA) requires brokers and agents to provide a disclosure document that breaks down how your quote was calculated, including any commissions. By going directly to the broker and bypassing the managing agent, you’ll reduce wasted commission paid to them and potentially to your broker, saving you money.

Reply to the comment left by Richard AA at 27/06/2025 – 15:41
Our buildings insurance is pretty good, and when all other blocks seem to be going up significantly, ours went down last year. But I will look into the directors insurance.

Our quotes for 2025-26 were
Pen £229.01 cover £1M via The Insurance Suite
Allianz £162.54 cover £1M via Edison Ives
AVA £366.73 cover £1M via Alan
Boswell Group

4 Directors & 1 Company Sec

Hope that helps

About £150- £200 is about right. Shouldn’t matter how many directors