Directors and officers insurance

Why insure directors and officers?

In Canada, the number of claims against directors and officers is on the rise. In order to protect this socio-professional category, insurers are making multi-risk insurance available to cover their personal assets in the event of an incident. Lawsuits can be brought against private companies or NPOs, which is why it is essential to contact a broker specialized in directors' and officers' insurance.

The importance of directors' and officers' insurance

The directors or officers of a board of directorsAs a result of a specific wrong decision or unjustified dismissal of an employee, the company, organization, director or manager may be subject to legal action. In the event of misconduct, the company, organization, director or manager may be subject to legal action.

About directors' and officers' insurance cover

There are many different companies on the insurance market, offering a wide range of policies and coverage to suit all needs. Generally speaking, however, here are the cases requiring directors' and officers' insurance coverage:

• Failure by the company or organization to pay source deductions due to the government.
• Receipt of dividends when the company is in financial difficulty. This state of affairs can lead to legal action by other shareholders, who may consider that the company's financial management has been inadequate.
• Conflict between the various directors.
• Disclosure of information or lack of transparency on the part of the company
• Poor management of the structure
• Wrongful dismissal of employees. Note that some insurers may offer a special extension to cover this type of incident.

Regardless of the size of your organization, legal action can be taken at any time. Hence the need to contact a specialized insurance broker in directors' and officers' insurance. It's an opportunity to guarantee protection for the personal assets of directors and officers, in addition to those of the company.