Directors & Officers Insurance

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.

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.

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.

Non-Profit 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.

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.

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

• Commercial General Liability (CGL)
• Commercial Property (Buildings, equipment, tools, stock, etc.)
• Professional Liability (Errors & Omissions)
• and more…

• Bingo Hall
• Botanical Gardens
• Campus or Community Radio Stations & Newspapers
• Civic, Community, Special Interest Associations or Groups
• Community Centres
• Community Organizations
• Counselling Services
• Foundation
• Health, Disability Associations, Societies (Red Cross, Cancer Society, War Amps, Addiction Work, etc.)
• Historical Society
• Legion Hall
• Lion’s Clubs
• Trad, Professional and Business Associations
• Research / Development Institute
• Social Welfare Organization
• Other