Private Company Directors and Officers Insurance Get A Quote
Directors & Officers Can Put Your Company At Risk
Corporate transparency and accountability are critical the success of any Canadian business. With the current focus on regulatory mandates as well as shareholder activism, more frequently, directors and officers find their decisions being called into question. Privately held companies, including non-profits, are not exempt from litigation arising out of the management decisions of their boards. They, too, are at risk.
Related Matters: Duty of Care: A Directors Responsibilities Explained
Regardless of your company’s size, the legal cost to defend a director or officer is substantial, as are the potential penalties that can be personally incurred. Due to the personal liability risk—which is not covered under a personal insurance policy—protecting boardroom talent can be a challenge. To help ensure both your officers’ and company’s well-being, a directors & officers insurance (D&O) policy is an important part of a comprehensive risk management strategy.
D&O Insurance Fills Coverage Gaps
Unlike a commercial general liability insurance (CGL) policy that provides coverage for claims arising from property damage and bodily injury, directors and officers liability insurance specifically provides coverage for a “wrongful act,” such as an actual or alleged error, omission, misleading statement, neglect or breach of duty.
A directors & officers insurance policy may include:
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Indemnification provisions are typically included in a corporation’s charter and/or bylaws. However, small to mid-size privately held companies and/or non-profit organizations may not have the financial resources to fund the indemnity provisions, making the bylaws hollow. In the event of a covered loss, a directors & officers insurance policy can provide an extra layer of security.
Directors and Officers Insurance Get A Quote
An ALIGNED Insurance advocate can help you determine your coverage needs and complete a directors and officers insurance application form.
Talk to one of our advocates today about how we can help you secure the best products, services and solutions for your business. Directors and officers insurance get a quote with ALIGNED.
ALIGNED Across Canada
100% Canadian owned, ALIGNED is a premiere insurance brokerage that serves more than 1,400 clients across the country. ALIGNED’s offices in Toronto, Calgary and Vancouver are supported by a national operations centre in Cambridge, Ontario. Uniquely within the industry, ALIGNED creates, negotiates and delivers the best business insurance and risk management strategies/solutions to organizations like yours.
Source: IRMI
