Director Insurance Update: The Potential Impact of Bill 146
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Why Bill 146 Could Make Director Insurance Needed Now More Than Ever!
If Bill 146 Stronger Workplaces for a Stronger Economy Act, 2013 is brought into law it could significantly increase the potential for personal liability among Directors’ and Officers’ of Ontario companies and make director insurance needed now more than ever…
Find out why in the below link:
https://www.lexology.com/library/detail.aspx?g=214c4814-b166-496e-bbe7-b364333e1fda
How Director Insurance Can Help With The Potential Impact of Bill 146
Directors insurance is a great way to transfer or minimize risk and protect the assets of both the corporation and the individual directors and officers of the company. Director insurance is a type of liability insurance covering directors and officers for claims made against them while serving on a board of directors and/or as an officer. Directors and officers insurance can be written to cover the directors and officers of publicly traded companies, privately held firms, not-for-profit organizations, and educational institutions. In effect, the policies function as “management errors and omissions liability insurance,” covering claims resulting from managerial decisions that have adverse financial consequences.
Director Insurance (D&O) policies can contain “shrinking limits” provisions, meaning that defense costs—which are often a substantial part of a claim—reduce the policy’s limits. This approach contrasts with commercial general liability (CGL) policies, in which defense are typically covered in addition to policy limits. However, some director insurance products do provide defence costs in addition to the limit on an unlimited basis or could provide a special sublimit that is “in addition to the policy limit” that is specifically for defence costs.
To discuss the potential impact of Bill 146 on the risk associated with being a Director or to learn more about director insurance speak to ALIGNED Insurance Advocate or connect with us at www.alignedinsurance.com for more details.
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