Directors' and Officers' Liability
Need for Insurance
Private corporations and non-profit entities often find it difficult to understand the need for Directors' and Officers' Liability insurance. However, due to the number of articles appearing in newspapers, the need for this insurance is becoming clearer.
Directors and officers of privately held corporations and non-profit entities are held to the same standards as publicly traded companies. Directors and officers are responsible for directing the affairs of the corporation or non-profit entity and must follow three basic duties:
- duty of diligence
- duty of loyalty
- duty of obedience
If it is alleged that the directors and officers have failed in these duties, they may be held responsible for such negligent action.
Claims against the directors and officers can arise from many different sources, including: shareholders, employees, competitors, customers, or governmental agencies.
Coverage Defined
The Directors' and Officers' Liability Insurance Policy (D&O) pays on behalf of individual directors and officers damages and expenses in the event they are sued in conjunction with the performance of their duties as directors or officers of the corporation. The indemnity includes defence costs and damages that the corporation cannot pay either because indemnification is not permitted or the corporation is not financially able to do so. Further, the policy will pay on behalf of the corporation for those amounts the corporation is required or permitted to pay on behalf of its directors and officers.
Coverage Benefits
Trisura has a comprehensive Directors' and Officers' Liability Insurance product that protects the directors of privately held and publicly held corporations. Our extensive coverage also includes options to purchase both Employment Practices and Fiduciary Liability insurance extensions.
For Non-Profit risks, we have a tailored D&O product that has been designed to meet the unique needs of the non-profit entity. This policy extends coverage beyond that of the traditional D&O policy to include coverage for the non-profit's trustees, employees, volunteers and the entity itself. To further round out the coverage, we also provide an option to extend the policy to cover any professional liability exposures the non-profit entity may have.
The Trisura Advantage
At Trisura we offer:
- Expertise - many years of experience with analyzing Directors' and Officers' exposures
- Solutions - we will take the time to meet with clients in order to better understand their business risk profile
- Flexibility - a willingness to look at new companies others shy away from
- Customization - ability to offer D&O coverages based on the needs of the entity
- Options - we will consider extensions on the policy for the appropriate risk in order to address the needs of the client
Coverages Available
- Directors' and Officers' Liability Insurance - Private & Public Corporations
- Excess Directors' and Officers' Liability Insurance
- Non-Profit Management and Corporate Liability Insurance
- Employment Practices Liability Insurance
- Fiduciary Liability Insurance
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