Non-Profits, Private, Public
In Ontario, directors and officers insurance (D&O) help protect individuals serving as directors or officers on boards of non-profits, private companies, and public corporations. These individual can be held accountable for actions and inactions of the organization with which they serve.
Whether statutory liabilities, breach of duty, or wrongful allegations of breaches, all can put the company in question under a spotlight and in an uncomfortable legal position. This liability insurance will provide an efficient means of protection for individuals under these circumstances.
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Why Buy Directors and Officers Insurance?
In the event of a lawsuit, the protection provided by the D&O Insurance would cover defense costs and any potential awards or settlements arising from successful litigation.
With insolvency or wrongful act lawsuits on behalf of a director (resulting in legal process), Directors and Officers Insurance ensures that they would have the legal defense and indemnification if found liable.
Non-profits, in particular, have limited resources with which to respond to indemnification claims. This would put the personal assets of the office staff at risk, along with the assets of the organization itself.
D&O Insurance for Private Companies
Public or private companies have the same exposure risk. Conflicts of interest, allegations of misrepresentation, and breaches of fiduciary duty – all hold the same weight in court.
Prudent companies buy Directors and Officers Liability Insurance to protect themselves from any and all instances where legal proceedings and potential payouts would cause severe financial distress to a private organization.
When Is Directors and Officers Insurance Needed?
The most honest answer is now! Put an insurance policy into motion before any instances arise where your fiscal ability to survive them may be challenged, and your organizational reputation is put to the test.
Wikipedia offers more detailed information about Directors and Officers Liability Insurance.
Contact Our Business Insurance Brokers
Call Huronia Insurance Group today and speak with one of our informed and knowledgeable business insurance brokers about D&O insurance. Let us help you protect your small business, non-profit organziation, public company, or private company.
Our business insurance brokers will be able to provide you with information on a policy most applicable to your organization and explain all the procedures necessary to secure the best coverage possible.