Directors & Officers Liability Insurance

Directors & Officers Liability Insurance

Widely known as D&O insurance or Professional Liability, Directors & Officers insurance is designed to protect organizations from lawsuits and associated legal costs. Coverage is available for both for-profit and not-for-profit organizations. Directors and Officers have a personal stake in ensuring that the corporation they serve operates within the law, regulations, and statutes that govern corporate behaviour.

In BC and throughout Canada, corporate laws and statutes have built-in penalties and strict liability provisions for Directors and Officers. These laws were created specifically to pierce the corporate veil, to provide accountability of certain key individuals within organizations while providing an incentive for fair corporate governance.

Additional Applications for D&O Insurance

Landlord insurance covers a variety of items depending on whether the property in question is a detached home or a stratified condo. Here’s a summary of standard coverages included in a landlord insurance policy that will help protect you and your rented home as well as a few optional add-ons for extra peace of mind.

  • Public Policy Exclusions
  • Conduct (Fraud & Dishonesty)
  • Underwriting Exclusions
  • Major Shareholder Exclusion
  • Pending and Prior Litigation Exclusion
  • Employment Practices Liability
  • Contractual Liability
  • Hammer Clause
  • Entity Security Coverage
  • Spousal Liability
  • Extended Reporting Period
  • Pollution Extension
  • Defense Costs Allocation

Above all, Directors and Officers have a responsibility to exercise due diligence in overseeing the management of the organization that they serve. They are required to act in good faith and in the best interest of the organization. In summary, Directors and Officers have 3 basic duties:

1. Duty of Diligence and Care where they act reasonably and in good faith to ensure all of the company’s best interests are put first.
2. Duty of Loyalty where they ensure they always put the interest of the company before their own.
3. Duty of Obedience where the Directors and Officers always act within the scope of applicable governance and bylaws.

How much does Directors & Officers Insurance Cost in BC?

A Directors and Officers Liability policy is not nearly as expensive as people think. Depending on the roles the Directors and/or Officers are required to fulfill, a policy can start as low as $400 annually. Please contact one of our 90 locations for a free, no-obligation quote for D&O insurance.