What is Directors and Officers Liability Coverage?
Directors and Officers Liability Insurance, often called D&O, is liability insurance payable to the directors and officers of a company, or the organization itself, as reimbursement for losses or advancement of defense costs in the event an insured suffers a loss as a result of a legal action brought for alleged wrongful acts in their capacity as directors and officers.
What types of lawsuits might D&O coverage include?
If Directors and Officers fail to act properly, they may be liable, depending upon the circumstances, to shareholder, employees, customers, creditors, competitors, regulators and other third parties.
In Canada, Directors can be held personally liable, jointly and severally, for unpaid employee wages, vacation and pay taxes. The liability is imposed without fault, on a strict liability basis, and can include liability for amounts which become outstanding even after a director resigns.
The principal sources of actions and allegations against Directors and Officers are extremely broad and can include:
• Misrepresentation/Failure to Disclose
• Failure to Remit Statutory Obligations
• Breach of Contract
• Breach of Duty
• Shareholder Disputes
• Regulatory Actions
• Actions by Creditors and Trustees in Bankruptcy
• Employment Practices Claims
Your Peace of Mind is Within Reach
Call The Hull Group today and speak with one of our representatives to learn more about how your management or board responsibilities may place you at risk and how you may benefit from D&O coverage.