Serving as a director or officer means making decisions that shape a company’s future. However, it also entails accepting a level of personal responsibility that is often underestimated. If an allegation is made against the organization, you could be held personally liable—even if you acted in good faith.
For instance, if the company fails to remit source deductions or if a financial decision jeopardizes its stability, you may be sued individually. This risk is not exclusive to large corporations; any business, regardless of size or structure, exposes its directors to such liabilities.
Directors and officers liability insurance acts as a shield against the financial consequences of such lawsuits. It covers legal fees, settlements, and prevents you from having to dip into your personal assets to defend yourself.
The experts at J. Gérard Fortin & Associés understand these complex issues and assist you in providing protection commensurate with your responsibilities.
Directors and officers must be covered by insurance that reflects the legal, fiscal, and strategic risks their positions expose them to. This protection extends beyond simple administrative errors; it encompasses all actions that could have legal or financial impacts.
Typically, this type of insurance excludes certain areas: pollution or nuclear risks, insider trading, and intentionally fraudulent acts.
The specialized brokers at J. Gérard Fortin & Associés will guide you with clarity and expertise, ensuring your protection is comprehensive, relevant, and suited to your company’s reality.
Key Protections Included:
Covers personal consequences of misguided decisions that caused harm to the company or third parties.
Protects against lawsuits for non-payment of source deductions or other amounts owed to the state.
Includes directors’ liability for actions taken on behalf of the company, even without their direct consent.
Covers claims of unjust dismissal, discrimination, or harassment, including legal fees, even in the absence of fault.
Offers protection if, for example, declaring dividends renders the company vulnerable or harms its creditors.
Yes. Coverage can extend to external or independent directors if their role is recognized within the board. It’s important to specify this during the subscription process.
Yes, under certain conditions. A policy can be extended to cover directors of subsidiaries, but this depends on the company’s structure and must be validated by the broker.
Typically, intentional fraudulent acts are excluded from coverage. However, it’s crucial to discuss specific scenarios with your broker to understand the extent of protection.