Insurance for Directors & Officers
Coverage to protect organization from lawsuits and associated legal costs
Directors & Officers Liability Insurance
in British Columbia
Widely known as D&O insurance or Professional Liability, Directors & Officers insurance is designed to protect organizations from lawsuits and associated legal costs. Coverage is available for both for-profit and not-for-profit organizations.
Directors and Officers have a personal stake in ensuring that the corporation they serve operates within the law, regulations, and statutes that govern corporate behaviour.
In BC and throughout Canada, corporate laws and statutes have built-in penalties and strict liability provisions for Directors and Officers. These laws were created specifically to pierce the corporate veil, to provide accountability of certain key individuals within organizations while providing an incentive for fair corporate governance.
Directors and Officers Duties:
Directors and Officers have a responsibility to exercise due diligence in overseeing the management of the organization that they serve. They are required to act in good faith and in the best interest of the organization. In summary, Directors and Officers have 3 basic duties:
Duty of Diligence and Care
To act reasonably and in good faith to ensure all of the company’s best interests are put first.
Duty of Loyalty
To ensure they always put the interest of the company before their own.
Duty of Obedience
To adhere to all applicable governance and bylaws in all actions as Directors and Officers.
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Additional Applications for D&O Insurance
In addition to standard coverage, Directors and Officers Liability Insurance may also include various exclusions and specific clauses tailored to address unique organizational risks. These additional applications ensure comprehensive protection from liabilities such as fraud, dishonesty, or shareholder disputes. Understanding these exclusions helps companies identify coverage gaps and make informed decisions regarding their risk management strategies. Whether it's covering defense costs or extending coverage to spouses, these provisions are crucial in ensuring that your organization's leadership remains fully protected from a variety of potential legal challenges.
Customer Testimonials
At InsureBC, we're proud of the trust our clients place in us. See what they have to say about their experiences working with our team of expert insurance brokers.
InsureBC helped me choose the right policy for my tech startup that covered all my needs. Their customer service was fantastic, and the process was easy and hassle-free.
As a small business owner, I was worried about the risks that come with running a business. InsureBC made it easy for me to get the coverage I needed and their customer service was excellent. They helped me find the right policy for my business and were always available to answer any questions I had
We needed a policy that would protect us from any potential lawsuits. InsureBC provided us with the coverage we needed and their customer service was exceptional. They helped us understand the complexities of insurance and made sure we had the right coverage for our practice
Second time now being helped with commercial liability insurance. Both times they were very helpful and very attentive to my requests. Highly recommend. Excellent service!
Frequently asked Questions
How much does Directors & Officers Insurance Cost in BC?
A Directors and Officers Liability policy is not nearly as expensive as people think. Depending on the roles the Directors and/or Officers are required to fulfill, a policy can start as low as $400 annually. Please contact one of our 90 locations for a free, no-obligation quote for D&O insurance.
What types of risks does D&O liability protect against?
D&O policies typically cover negligence related claims against individual directors and officers related to financial loss caused by mismanagement, errors in judgement etc., libel/slander claims arising out of publications made within the scope of their corporate role; breach fiduciary duty claim which arise when there has been a failure by the insured person(s) to carry out their legal duties; securities litigation claiming that false information was given to the public through a press release or other form of announcement; and wrongful employment practices such as breach of contract, discrimination, sexual harassment etc.
When should I get D&O insurance?
As soon as you become a director or officer in a business, it’s important to consider getting this coverage. In some industries such as finance or health care organizations are required by law to have certain levels of D&O insurance in order to operate.
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