When Directors and Officers of a UK Tour Operator Can Face Personal Liability — and the Importance of D&O Insurance
04-Feb-2026
Category: News Stories
In the UK, directors and officers (D&Os) of tour operators hold significant responsibilities for ensuring legal and regulatory compliance. Whilst limited liability can protect individuals from personal liability, situations can arise when the corporate veil is lifted and that protection lost.
Such liability may arise when for example, directors breach their statutory duties under the Companies Act 2006—for instance, by failing to act in good faith, exercising reasonable care, or avoiding conflicts of interest. And can also include claims of wrongful trading when a company is, in effect, insolvent.
However, given the public facing nature of a travel company, its directors can face greater potential exposure than many. Prosecutions for misrepresentation in brochures and advertising material resulting in misleading information can expose individuals to legal or regulatory claims, in addition to the company itself.
Breaches of health and safety legislation can give rise to the corporate veil being lifted and in worst case scenarios even prosecution for gross negligence manslaughter.
Given the complex regulatory environment of the travel sector and the wide ranging nature of the goods and services being supplied to the public, often on a global basis, directors’ decisions can have far-reaching consequences. Defending such claims can be expensive and reputationally damaging, even when directors are ultimately cleared of wrongdoing.
Directors’ and Officers’ (D&O) insurance can potentially help. D&O insurance provides financial protection against legal costs, damages, and investigation expenses arising from alleged wrongful acts. For tour operators, it ensures that leadership can make informed, strategic decisions without the constant fear of personal financial loss—safeguarding both individual confidence and corporate stability.
For further information on how Directors’ and Officers’ Insurance may benefit you, please contact Alan Pattison at Travel Risk Professionals – alan.pattison@jensten.co.uk
