Edmonton Directors’ and Officers’ Liability Insurance
Edmonton is home to many for-profit businesses and non-profit organizations. Whether you have a volunteer or paid board members or a team of executives, it’s important to carry directors’ and officers’ liability insurance. This coverage helps financially protect directors and officers of a company if they are held legally liable for errors made in their role as a director or officer. It extends coverage to the organization as well as the individual. Contact us today to get a directors’ and officers’ liability insurance quote for your Edmonton business or non-profit organization.
What is directors’ and officers’ liability insurance?
Directors’ and officers’ insurance is specifically designed to financially protect Edmonton’s directors, officers and other executives of for-profit or non-profit organizations if they’re sued as a result of their actions taken in that role. It can protect individual executives and the company or non-profit organization in this situation.
What is covered by directors’ and officers’ liability insurance in Edmonton?
Generally, directors’ and officers’ liability insurance helps cover legal expenses if a director or officer is sued for failing to perform their duties. This includes defence costs, judgement awards and settlements.
Common claims that would be covered under directors’ and officers’ liability insurance in Edmonton include:
- Allegations of Negligence
- Breach of Fiduciary Duty
- Creditor Claims
- Employment Malpractice
- Inaccurate Disclosures
- Insolvencies
- Lack of Corporate Governance
- Misleading Statements
- Reporting Errors
- Violation of Regulations
Your policy documents will outline exactly what’s covered.
What isn’t covered by directors’ and officers’ liability insurance in Edmonton?
Directors’ and officers’ liability insurance will not protect Edmonton’s non-profit or business executives if they intentionally misrepresent, fail to disclose or commit fraud or another criminal offense. This policy will also not cover claims of one executive suing the organization or another director (to not reward deceit).
It also won’t cover any claims of personal injury or property damage, as those types of incidents are covered under commercial general liability insurance. It also doesn’t cover the cost of any regulatory fines or penalties.
Specific exclusions will be outlined in the policy documents.
How much directors’ and officers’ liability insurance is needed in Edmonton?
The amount of coverage your Edmonton business or non-profit requires will depend on several factors:
- Type of business or organization.
- The likelihood of a lawsuit and potential costs.
- Potential directors’ and officers’ liability risks.
- Your annual revenue or value of your assets and contracts.
Your broker will help you determine the amount of coverage your company or non-profit organization requires.
Who needs directors’ and officers’ liability insurance in Edmonton?
Both for-profit and non-profit organizations require this coverage as well as the individuals who work for them.
How much does directors’ and officers’ insurance cost in Edmonton?
Directors’ and officers’ insurance rates in Edmonton are impacted by:
- Your insurance options including coverages and limits.
- Your annual revenue or value of your assets or contracts.
- Your operations and business risks.
- The number of employees.
- Your industry.
- Your insurance history including previous claims.
Does directors’ and officers’ liability insurance provide legal counsel?
If you purchase a directors’ and officers’ liability insurance policy, you may be able to choose between duty to indemnify coverage or duty to defend coverage. In the former, a company or non-profit can provide their own legal counsel and your insurance covers reasonable costs. In the latter, your insurer provides the legal counsel.
Unless you are a larger organization with access to a trusted, experienced legal team, you should opt for a duty to defend policy.
Why should I choose A-WIN Insurance for my directors’ and officers’ liability insurance in Edmonton?
Our Edmonton Commercial branch specializes in commercial insurance for businesses and non-profits. We have the experience and expertise to get you the right coverage for your needs at the best possible price. We are an independent broker, which means we work for you and not an insurance company. We are here to provide you with professional advice and support you through the claims process.
Contact us today to discuss directors’ and officers’ liability insurance or to get a quote for your Edmonton business.