Directors and officers insurance cost in Australia ranges from roughly $2,000 to $5,000 per year for a small private company through to $20,000 or more for listed entities. A management liability policy that includes D&O may start lower, from around $800 per year for a sole director. These are indicative only. Actual cost depends on company size, industry, financial position, claims history, board structure, selected limit, excess, and whether the cover is standalone D&O or part of management liability.
For a full guide on what D&O insurance covers, see what is directors and officers insurance in Australia.
At a glance
- D&O cost varies widely because director liability risk varies widely
- Main drivers: revenue, industry, financial condition, claims history, board structure, limit, and excess
- Standalone D&O pricing is different from management liability pricing
- A management liability premium is not the same as a standalone D&O premium, even where the ML policy includes a D&O section
- The Australian D&O market has softened from the hard-market period, but reductions depend on risk profile
- The most accurate way to check cost is to quote using actual company details
- upcover arranges directors and officers insurance for eligible Australian businesses.
Why is there no single average D&O cost?
There is no reliable single average because D&O insurance is priced around the company's exposure to director and officer claims. A quiet private consulting company with 2 directors is a different risk from a startup with 5 board seats and investor reporting obligations. A not-for-profit with volunteer committee members creates a different exposure from a listed company with shareholder class action risk.
The policy structure matters too. Standalone D&O with dedicated limits is priced differently from a D&O section inside management liability that shares limits across EPL, statutory, crime, and tax audit.
Indicative D&O insurance cost by business type
These ranges reflect broad Australian market observations and are indicative only. Actual premiums depend on underwriting information, insurer appetite, policy structure, and the factors listed below.
| Business type |
Typical structure |
Indicative annual range |
| Sole director, micro company |
ML-bundled |
$800–$2,500 |
| Small private company (2–5 directors) |
ML-bundled or standalone |
$2,000–$5,000 |
| Growing company with investors |
Standalone D&O |
$5,000–$15,000 |
| NFP or association with board |
Standalone or ML-bundled |
$1,500–$5,000 |
| Listed company (small cap) |
Standalone with Side C |
$20,000–$100,000+ |
A management liability premium is not the same as a standalone D&O premium. ML bundles D&O with other covers under shared limits. Standalone D&O provides dedicated director limits that are not eroded by employment, statutory, or crime claims from other sections.
What affects D&O insurance cost?
- Company size and revenue. Larger companies generally face higher premiums because stakeholder exposure and potential claim costs increase with scale.
- Industry and regulatory exposure. Financial services, healthcare, construction, and technology businesses may face higher premiums due to regulatory scrutiny.
- Financial position and solvency. Businesses under financial stress, approaching insolvency, or with deteriorating financials may face higher premiums or restricted cover. D&O claims often arise when companies fail.
- Number of directors and officers. More insured persons means more potential claim triggers.
- Public, private, or NFP structure. Listed companies pay significantly more due to securities exposure and shareholder class action risk.
- Claims history and known circumstances. Prior claims, disputes, or investigations can increase premiums. Known circumstances may also affect pricing.
- Capital raising, M&A, or restructuring. Fundraising, acquisitions, and restructuring increase director exposure and may affect pricing.
- Coverage limits and excess. Higher limits cost more. A higher excess (retention) may reduce the premium but shifts more risk back to the business or director.
- Side A/B/C structure. Adding Side C (entity securities cover) increases the premium, particularly for listed companies. Side A-only cover is narrower and may be priced differently from a full Side A/B/C program.
- Standalone D&O vs ML-bundled. Standalone D&O with dedicated limits may be priced differently from the D&O section within a management liability policy. The comparison is not like-for-like because the cover structure, limits, and wording differ.
How the D&O market affects cost
D&O pricing moves with insurance market cycles. After a harder period from roughly 2017 to 2022 where D&O premiums rose sharply across Australia, market updates through 2024 and 2025 indicated increased insurer capacity and more favourable pricing for many buyers. Premium reductions of 15% to 40% were reported in some sectors, depending on industry and company performance.
Market softening does not mean every business receives a lower premium. Insurers still assess each company's financials, claims history, governance, and requested limits individually.
Standalone D&O vs management liability: cost implications
Management liability bundles D&O with EPL, statutory liability, crime, and tax audit under one policy with shared limits. This can appear cheaper than standalone D&O, but the comparison is not like-for-like because limits, sub-limits, and exclusions differ.
The trade-off: a $1 million ML policy does not mean $1 million is available for D&O claims if other sections have already used part of the limit. Standalone D&O provides dedicated limits for director claims only. For the full comparison, see management liability vs D&O insurance.
How to compare D&O quotes
Price is one factor, and the cheapest quote is not always the best value. When comparing D&O policies, these differences matter more than the headline premium:
- Is the D&O limit shared with other ML sections or dedicated to D&O?
- Are defence costs inside or outside the limit? (Inside means defence erodes the amount available for settlements.)
- What is the director's personal excess?
- Is there a dedicated Side A limit, or does Side A share the overall policy limit?
- Is run-off cover for past directors included?
- What insured-vs-insured carve-backs apply?
- Are outside board roles, investigation costs, and emergency defence costs included?
What you need for a quote
You are usually asked for your ABN, company structure, industry, revenue, assets, number of directors and officers, board composition, funding stage, M&A or restructuring plans, claims history, known circumstances, current insurance schedule, preferred limit, and whether you want standalone D&O or management liability.
upcover arranges directors and officers insurance for eligible Australian businesses. Get a quote.
How upcover can help
upcover arranges directors and officers insurance as a standalone product and as part of management liability insurance for eligible Australian businesses with selected insurers and underwriters. Depending on insurer and policy wording, cover may help with legal defence costs, company indemnity reimbursement, investigation expenses, outside board roles, and run-off for past directors.
- 70,000+ businesses covered across Australia.
- 4.9/5 customer rating.
- 80+ insurance partners.
For related guides, see what is D&O insurance, management liability vs D&O, and understanding employer liability for directors.
upcover Pty Ltd ABN 17 628 197 437 is a Corporate Authorised Representative (CAR 1299211) of Experience Insurance Services Pty Ltd ABN 41 657 596 506, AFSL 539078.
Frequently asked questions
How much does D&O insurance cost in Australia?
There is no single average. A small private company might pay $2,000 to $5,000 per year while a listed company could pay tens of thousands or more. The premium reflects the company's risk profile, board structure, and cover type, not just its size.
Why is there no single average D&O cost?
Because D&O is priced around the company's exposure to director liability claims. Two companies with the same revenue can receive different premiums based on industry, financial health, board structure, and claims history.
Is standalone D&O more expensive than management liability?
Standalone D&O with dedicated limits is usually more expensive than the D&O section inside ML. The comparison is not like-for-like because standalone D&O provides dedicated limits while ML shares limits across multiple covers.
How much does D&O cost for a small business?
A small private company with 2-5 directors and a simple structure may see indicative premiums in the range of $2,000 to $5,000 per year, depending on industry, claims history, and cover structure. This is indicative only.
How much does D&O cost for a not-for-profit?
NFPs and associations with boards may see indicative premiums in the range of $1,500 to $5,000 per year, depending on board size, governance obligations, and cover level. This is indicative only.
Does claims history affect D&O cost?
Yes. Prior claims, disputes, investigations, or known circumstances can increase premiums. A clean claims history is generally assessed more favourably.
Can D&O insurance cost change at renewal?
Premiums can change based on financial performance, claims experience, market conditions, insurer appetite, limit changes, and any changes in company structure or risk profile.
Does Side C affect D&O insurance cost?
Side C may affect pricing because it covers the company entity for certain securities claims, mainly in listed-company contexts. Pricing depends on the insurer, company structure, and selected limit.
Is D&O insurance getting cheaper in Australia?
Market updates through 2024 and 2025 pointed to more favourable D&O pricing for many buyers after a harder market period. That does not mean every business will pay less. Pricing still depends on the company's risk profile, claims history, financial condition, and selected limits.
How do I get a D&O insurance quote?
Provide your ABN, company structure, revenue, number of directors, claims history, and preferred limit. upcover arranges D&O insurance as standalone cover and as part of management liability.
The information in this article is general in nature and provided for informational purposes only. It does not constitute personal insurance, financial, or business advice. Cost ranges are indicative only and reflect broad market observations. Actual premiums depend on insurer, policy wording, underwriting information, and the specific risk profile of the business. All insurance products arranged through upcover are subject to the terms, conditions, limits and exclusions in the relevant PDS. Before deciding whether a product is right for you, consider your circumstances. upcover Pty Ltd ABN 17 628 197 437, CAR 1299211 of Experience Insurance Services Pty Ltd ABN 41 657 596 506, AFSL 539078.
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