Ontario D&O Insurance
One of the most talked about and least comprehended types of insurance is D&O Insurance. Those that watch the market have taken notice that even some legal professionals are unclear about the type of coverage carried by insured managers.
Here at Bethel Insurance in Ajax, Ontario, we feel that it is essential to provide our clients with as much clarity as possible when it comes to their insurance coverage. We will take the time to discuss with you the questions and concerns that you may have regarding your coverage options.
What Is Directors And Officers Insurance?
This policy will provide liability coverage for the managers of your company. This will offer these key members of personnel with protection against the claims that may arise from actions and decisions that they take during the course of their regular business duties.
Your policy will provide coverage for the personal liability of the directors and officers of the company as individuals. However, it will also reimburse the company in the even that a third party claim has to be paid on the behalf of company managers for their protection.
Why Should Your Company Invest In D & O Insurance?
Simply put, managers are going to make mistakes. Often times, they will be held personally accountable for the mistakes that they make. Directors and officers are constantly having to walk a fine line, making difficult and complicated decisions that will have a major impact even when the information that they have available to them is limited. For example, the pressure is high on these company officials during acquisition and merger situations.
An increasing number of companies are beginning to operate in an international environment. This means that operations, trading partners and investors of these companies are located in areas all around the globe. Directors and officers must remember that it is important to remain in compliance with regulations, opinions and company practices at every location. Managers are facing the firing line as the level of complexity continues to rise.
D&O Insurance has become a basic part of risk management for many large, multinational companies and is essential for practically all types of companies. Of course, the publically traded corporations are at the greatest risk of exposure for D & O claims. Regardless of whether or not a company is publically traded, they have the potential for D & O risk exposure, even if the organizations is a non-profit.
It does not matter how sensibly they act and how strong their business perspicacity may be, all managers' decisions can lead to a loss for the company. The people that make these important decisions can be held liable for such loss, which could result in the involvement of expensive legal action.
Your Ontario company needs to make certain that your directors and officers have the peace of mind that they need to make important decisions. Directors and Officers Insurance makes these decisions transparent and manageable.
When a claim is made, your coverage will provide financial security for the plaintiff to a certain degree. In the event that your company is forced into bankruptcy, a Directors and Officers policy from Bethel Insurance will provide you, your creditors and your shareholders with the means to recover at least some part of the loss.
What Does D & O Insurance Cover?
The primary goal of this policy is to provide financial security for the managers of the company from the consequences of their wrongful acts during the course of doing business, whether they be alleged or actual. This type of insurance policy will provide compensation for the expenses related to the cost of defense and other financial loss.
In addition, extensions to Directors and Officers Insurance policies are sometimes available that will cover the costs that are created by the criminal and administrative investigations that are brought on by prosecutors or regulators. Such coverage extensions are becoming more important with company directors. This means that the managers will be compensated for a reliable, well-structured legal defense when necessary.
All past, current and future directors and officers of your company and any of its subsidiaries will be protected under your D&O policy from Bethel Insurance. This coverage will also include non-executive directors as well.
Do not make the mistake of overlooking this all-important type of coverage. You cannot sit by and watch the successful future of your company slip through the cracks because of the actions of one of your executives or board members. You can receive a quick, no obligation quote by simply clicking on the quote request button right away. The amount that you pay for your D & O Insurance premium is minimal when you consider how much is really at stake.