Canada D&O Insurance & Canada D&O Real Claims
Canadian D&O Insurance Coverage To Protect Against D&O Real Claims. Whether your organization is publicly traded, a non-profit or a small private company, each and every management decision made by your board directors and officers has the potential to put your bottom line at risk. The legal cost for any company to defend its directors or officers against a lawsuit will inevitably be substantial and ALIGNED insurance works with numerous leading insurers, like LIU Canada, As a division of Liberty Mutual Group to create directors and officers insurance coverage for all industry sectors that is custom-fit to help preserve and protect over the long term.
Canad P&C insurers pay millions in D&O insurance claims every year and the following is a recent example to demonstrate how LIU Canada D&O insurance responds to real-world directors and officers liability claims across the country.
Personal Liability and Bankruptcy. “A software development firm declared bankruptcy with over $500,000 in outstanding tax amounts owing to various revenue agencies. As the organization was insolvent and the proceeds from the sale were insufficient to cover the claimed amounts, a director was held personally liable. Coverage was afforded under “Side A” of the policy. After lengthy negotiations, a settlement was reached and $240,000 was remitted to the revenue agencies in addition to $30,000 in paid defence costs. Liberty incurred total costs of $270,000 as a result of this claim.”1
Breached Fiduciary Duties. “A former employee of a consulting services company left the organization to take a senior position at a competing firm. The consulting services company brought numerous actions against the competing firm, alleging the firm illegally stole commissions, personnel and business opportunities, as well as aided and abetted former employees of the company to breach their fiduciary duties. Coverage was afforded under “Side C” of the policy for both the insured entity and subsidiaries. Defence of the allegations continues with $1,900,000 in costs incurred to date.”2
Canada D&O Insurance – Get Your Directors ALIGNED With The Best Protection
While a commercial general liability insurance (CGL) policy provides coverage for claims arising from property damage and bodily injury, directors and officers liability insurance specifically provides coverage for a “wrongful act,” such as an actual or alleged error, omission, misleading statement, neglect or breach of duty.
To learn more about Canada D&O insurance and/or Canada D&O Real Claims, talk to one of our advocates today. We can help you evaluate your risks and select liability coverage that will respond in the event of a directors and officers insurance claim.
|ALIGNED Across Canada 100% Canadian-owned, ALIGNED is a premiere insurance brokerage that serves more than 1,400 clients across the country. ALIGNED’s offices in Toronto, Calgary and Vancouver are supported by a national operations centre in Cambridge, Ontario. Uniquely within the industry, ALIGNED creates, negotiates and delivers the best business insurance and risk management strategies/solutions to organizations like yours.|
Sources: 1,2 LIU Canada Directors and Officers Liability, LIU Canada Specialty Casualty Department