Edmonton Directors’ Insurance and Officers’ Insurance
To help you manage your company, you’ve appointed a team of qualified directors and officers. Their decisions have far-reaching impacts on the company, affecting employees, clients, and stakeholders.
We always aim to act in the best interests of our business, but even great leaders can make mistakes. If one of your directors or officers is found legally responsible for an error of judgment, it can have a major impact on your company.
Whether your director serves a small business or a chain of stores across Edmonton, directors’ and officers’ insurance protects you against adverse financial consequences. Understanding specialized commercial insurance can be tough. Interested in learning about how this coverage can benefit you? At Westland Insurance, we’re here to help.
What Is Directors’ and Officers’ Liability Insurance?
Directors’ and officers’ insurance coverage is specifically designed to protect your business against alleged or wrongful acts. Potential incidents include:
- Misrepresentation of the company
- Breach of duties
- Financial and credit liabilities
- Improper governance
- Environmental claims
- Failure to comply with laws and regulations
- Workplace safety issues
- Employee practices claims (failure to promote, employee discrimination claims, wrongful dismissal, or workplace harassment)
- Other potential wrongful acts
What Does D&O Liability Insurance Cover and Not Cover?
Officers’ liability insurance can protect you from claims made by creditors, competitors, employees, shareholders, and government or regulatory authorities. With a directors’ and officers’ insurance policy, you’ll be covered for the following:
Board members may be held accountable for claims such as inadequate supervision, failure to supervise/promote employees, wrongful termination, hiring decisions, harassment, or discrimination. If a personal lawsuit arises from these claims, this insurance policy will provide coverage.
If someone has made a false disclosure about their ties to a competitor or client, concerns may arise surrounding conflicts of interest.
Due to a reporting issue, your business may find itself in legal trouble.
Failure to comply with provincial or federal laws can lead to costly legal expenses.
If someone seeks personal legal action against your business for misleading statements, you may be facing defence costs. Legal defence fees can put a strain on the finances of your company.
You might be wondering: What isn’t covered by this specialized business insurance? With directors’ and officers’ insurance, you won’t receive coverage for property damage or bodily injuries. These personal liability claims are covered by general business insurance. You will also not be covered for intentional non-compliant acts.
How Much Does Directors’ and Officers’ Liability Insurance Cost?
The cost of your directors’ and officers’ insurance coverage will vary based on:
- Revenue
- Private or public company
- Industry experience
- Number of employees
- Claims history
- Industry
What Insurance Do I Need as a Director?
D&O insurance coverage can benefit private companies, non-profit organizations, franchises, and small businesses. Without it, your personal assets may be at stake.
If someone seeks legal action against your business, you may be concerned about company bankruptcy. Even though legal costs add up quickly, insurance can reimburse you for these expenses up to your policy limit.
Do you have questions about directors’ and officers’ insurance? At Westland Insurance, one of our advisors will be happy to help.
Does a Director of a Company Need Insurance in Edmonton?
Your board members make decisions each day that impact the success of your organization. Regardless of your industry, your organization can benefit from officers’ insurance.
Looking for an Insurance Quote?
It’s tough enough to find the right directors to represent your business. Now, you’re tasked with finding the right coverage, too. We’ll help you choose a business insurance policy that makes sense for your company.
We offer our services in the following locations:
Don’t leave your personal assets at stake. With officers’ liability coverage, you can enjoy peace of mind knowing that you have the coverage you need. To request an insurance quote, contact Westland Insurance today.
We’re Here to Help
Whether you’re looking for insurance for your first home or wanting to discuss your existing policy, our team is ready to help. Connect with us today.
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