Directors and Officers Insurance
Often referred to as D&O insurance and sometimes also known as Management Liability Insurance, Directors & Officers insurance is a type of coverage that protects individuals who are directors or officers of a company or organization. It also helps organizations attract and retain qualified leaders; few experienced directors will serve without it. D&O insurance is a smart choice to protect your business and your leaders from claims related to the decisions they make while managing your operations.
From small businesses to large operations, public or privately held for-profit or non-profit, your leaders make important decisions that can affect day-to-day operations. Whether it’s employee-related decisions or regulatory, fiduciary or governance responsibilities, leaders can be personally sued for their actions and bog down your operations. That’s why D&O insurance is an important part of your business’ risk planning and management to help keep your operations running smoothly.
Wrongful Acts
Coverage that helps pay for legal fees, judgments and settlements if leaders are sued personally due to their failure to act in the organization’s best interests, such as in the case of breach of fiduciary duty, misrepresentation, or poor or negligent corporate governance.
Employment Practices Liability
Coverage that helps pay for legal fees, judgments and settlements if leaders are sued personally by an employee for wrongful dismissal, discrimination, or harassment.
Misrepresentation
Coverage that helps pay for legal fees, judgments and settlements if leaders are sued personally by shareholders, creditors or investors for incorrect or misleading financial filings or errors in corporate reporting.
Compliance with Laws and Regulations
Coverage that helps pay for legal fees, judgments and settlements if leaders are sued personally for failing to comply with laws and regulations such as workplace safety and environmental laws, or employment standards and labour legislation.
Having D&O coverage in place signals to partners, investors, and stakeholders that your organization takes governance seriously.
Contact us today to learn more about our management liability insurance coverage and to get a free quote. We are committed to providing you with the best possible coverage at an affordable price.
Key Coverage
Common Claims
Wrongful Acts
A non-profit pet shelter rehomed a cat that was deemed to be in good health. A few months later, the cat required extensive medical treatment due to an undisclosed pre-existing condition resulting in excessive vet bills. The pet owner sued the shelter’s management for misrepresentation.
Employment Practices
A business owner fires an employee after repeated performance issues. The ex-employee sues for age discrimination because the issues only started after turning 60 years old. The courts found the business owner liable for not reasonably accommodating the aging employee.
Compliance
A business fails to follow employment laws related to minimum wage, overtime pay, and proper record‑keeping. As a result, employees file a lawsuit against the business and the management team.
The content on this page is for information only. The insurance products described are subject to terms, conditions, limitations and exclusions that are outlined in the policy wording. Please refer to the policy wording for complete details.