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DIRECTORS AND OFFICERS LIABILITY INSURANCE
Whether you are involved with a small non-profit association or a large corporation, the litigious nature
of today's society necessitates adequate insurance protection of your group's decision makers.
It is not uncommon for claims to be unjustified or unfounded; however, the costs associated with investigation and defence are often substantial. This insurance covers these defence costs, as well as, any amount for which the director or officer is found liable (subject of course to the limit of the insurance purchased).
Directors and Officers can be personally liable
In Canada there are numerous statues under which Directors and Officers could be personally liable. These include:
- Bank Act
- Bankruptcy Act
- Canada Deposit Insurance Companies Act
- Consumer Protection Act
- Loan and trust Corporations Act
- Real Estate and Business Brokers Act
- Competition Act
- Excise Act
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- Income Tax Act
- Unemployment Insurance Act
- Canada Business Corporations Act
- Retail Sales Act
- Securities Act
- Pension Benefits Act
- ... and more
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Activities which lead to Directors and Officers Claims
Here are some examples of the most common activities that lead to D&O claims:
- acquisitions/mergers/management buy-outs/sale of corporate assets
- foreign investment (especially in the U.S.)
- breach of contract
- waste or mismanagement of corporate assets
- bankruptcy/liquidation of the company
- changes in ownership
- employment practices:
- termination
- discrimination
- harassment
- defamation
- misrepresentation/non-disclosure
- breach of duty of care
- unpaid wages
- unremitted withholding of taxes
For a free Directors and Officers insurance quote, click here.
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