Directors and Officers Liability and Executive Risks
RISK MANAGEMENT TO FOCUS ON YOUR BUSINESS DECISIONS
As a corporate director, officer or member of the senior management team of your firm, it’s your job to trust your expertise, vision and judgment and make the tough corporate and business decisions. These decisions will necessarily impact the varying interests of a wide-ranging set of stakeholders with an equally wide ranging set of priorities and agenda.
There are many sources of liability for directors and officers. A Directors and Officers Liability insurance policy protects you, your corporate board members and your company from lawsuits alleging managerial negligence, errors and omissions, misrepresentations or misstatements that are alleged to have been committed by directors or officers.
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Directors and Officers (D&O) liability insurance also helps prevent your corporate assets from being squandered on expensive legal costs and damages in case of a lawsuit so you can keep your focus on what you do best: managing your organization.
LEGAL DEFENCE COSTS COVERAGE
Covers legal costs incurred to defend Directors and Officers from covered lawsuits, like all liability policies.
REGULATORY INQUIRIES AND INVESTIGATIONS PROTECTION
Provides coverage for costs incurred by your organization to oppose, document, or defend against regulatory investigations and inquiries.
CRIMINAL AND CIVIL ACTIONS DEFENCE
Although no insurance policy will truly cover intentional acts, D&O policies will still afford defence costs coverage to Directors and Officers relative to allegations of fraud, willful acts and other criminal matters until a final, non-appealable adjudication has been reached.
DIRECTOR AND OFFICER ESTATE PROTECTION
Directors and Officers are personally liable for corporate statutory liabilities (e.g.: wages, withholding taxes, corporate taxes). This means that personal assets are at stake in the event that the organization cannot cover them in the normal course of its operations. A D&O policy will cover these costs thereby taking Directors and Officers personal assets out of the equation.
RECRUITMENT AND RETENTION OF TOP-SHELF MANAGEMENT TALENT
Independent Directors with a value-adding skillset, network, and or expertise will often either require or be comforted that a D&O policy be in force to protect their interests.
BALANCE SHEET PROTECTION
Corporate litigation tends to be expensive and lengthy. A D&O policy is thus both a risk and cost transfer tool protecting the balance sheet.
TRANSACTIONS AND FINANCING
Venture capital and private equity financing as well as government subsidies or other financing mechanisms will often require evidence that the resulting cash injection is protected from being lost by way of management errors and omissions via adequate D&O insurance.
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The BFL CANADA advantage
BFL CANADA has achieved extraordinary growth because of our consistent ability to perform and deliver due to our expertise, professionalism and dedication, as well as our entrepreneurial culture. This culture and work ethic have driven our growth and attracted organizations with which we have established meaningful and mutually beneficial partnerships.
