Directors and officers can face personal liability for their actions or omissions in performing their duties on behalf of the corporation they serve. The list of who may sue is very long, however the principal categories include shareholders, creditors, other directors or officers, employees and various government branches and agencies authorized to enforce the numerous applicable statutes. The Federal statutory provision under the Canadian Business Corporations Act allows for a corporation to purchase and maintain insurance for the benefit of the current and former directors and officers of the corporation, as well as individuals acting as directors and officers of another entity.
D&O Insurance is available through Ogilvy Insurance.
Common claims covered under a D&O policy are as follows:
- Wrongful dismissal, discharge or termination of employment
- Unpaid wages, vacation pay and taxes
- Negligent misrepresentation
- Breach of duty
- Unfair trade practices
- Consumer protection violations, franchise disputes
- Wrongful interference with contract
- Copyright, patent and trademark infringement
If you are unsure whether or not your firm needs this coverage take a moment to answer the questions on our questionnaire. If you answer yes in two or more risk areas, the financial well-being of your organization may be at risk… Serious consideration should be given to purchasing Directors & Officers Insurance.