Directors & Officers Coverage

It’s a frequent occurrence in today’s business environment for individuals sitting on the board of directors for large public corporations, small private companies, and even non-profit organizations to be held liable for the decisions they make on behalf of their group. Ensure you have insurance for your board of directors with Directors & Officers Coverage (D&O).

Directors & Officers Coverage

It’s a frequent occurrence in today’s business environment for individuals sitting on the board of directors for large public corporations, small private companies, and even non-profit organizations to be held liable for the decisions they make on behalf of their group. Ensure you have insurance for your board of directors with Directors & Officers Coverage (D&O).

What is Directors & Officers Coverage (D&O)?

Director’ and Officers’ Liability provides insurance coverage for court defence costs as well as damages (court awards & settlements) resulting from wrongful act allegations, and any other lawsuit brought against an organization’s board of directors or officers. As mentioned above, a variety of company types benefit from a D&O policy, including: publicly traded companies, private companies, and non-profits. It is important to note that illegal acts are typically not something that would be covered under D&O policies.

Important Points:

  • Ignorance is not deemed a defence.
  • Resignation from a board is not necessarily a defence.
  • The company’s ability to indemnify may not be sufficient in the event of  a claim.

Key Points of Coverage

Protection

Protection for Liabilities of Directors

Persons of authority within an organization are held accountable for their actions - as well as inactions. Ensure you and other directors / officers are covered!

Liability

Personal & Lawful Defense Costs

Allegations of a breach of duties can leave directors personally responsible for defense costs. D&O covers lawyer and other defense costs in the event of a claim.

Court Settlements & Damages

Penalties imposed by the courts, federal, or provincial laws can be costly should a director be found in negligence of duties owed. Our package provides protection for this potential.

Why should our Board of Directors get D&O Liability Insurance?

As a member of a board of directors and / or officers, there is a duty owed which is to exercise due diligence in overseeing the operations of the organization served. Along with this comes the risk of personal liability for the members of a board, which could put your assets at risk. Liability claims can be quite costly and it’s important to ensure you’re organization has adequate insurance in place with directors & officers coverage.

What types of companies need D&O coverage?

Public Companies – Businesses that have shareholders have a particularly high risk for their directors & officers. When a company has shareholders, there is the potential for investors to accuse leadership of providing them with misleading information, among other risk possibilities. This policy will provide corporate leaders with peace of mind that their covered personally and able to make decisions with confidence.

Private Companies – Business owners often think that because they are a small outfit or a family owned company they do not have a D&O risk; however, this is not the case. If you have business relationships with suppliers and / or customers, you’re open to a personal lawsuit.

Nonprofit Organizations – D&O coverage is especially important for non-profit organizations. A board of directors that is spending their time developing a vision of a nonprofit is often a labour of love and to attract and keep a qualified board, directors’ and officers’ liability is a must have form of insurance.

How much does D&O Insurance cost?

The cost of your insurance policy will depend on certain variables including the type of organization applying, number of board members, limits of liability, and deductibles requested. We are able to offer terms with premiums as low as $500 for annual coverage. We know that, especially with nonprofits, your budget can be tight.

Please note that completing our application for insurance does not cost anything or require you to proceed with the coverage once a quote is provided – customer service is our first priority.

Additional Available Coverage Options:

We are able to offer various types of insurance coverage to supplement your D&O liability, including: