The need for D&O insurance is more critical than ever — and it's not just for large corporations anymore.

Directors and officers in organizations of all sizes face unique liability challenges. Protecting your personal assets and your organization from claims and financial losses is important, and we can help.

Our specialized D&O insurance program provides the precise coverage you need at the best possible price.

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What Is Directors and Officers Insurance (D&O) Insurance?

Directors and officers insurance is a specialized professional liability insurance that protects the personal assets of corporate directors and officers against claims of alleged wrongdoing.

D&O insurance is particularly valuable during changes like business succession, mergers, or stakeholder transitions, ensuring leadership decisions don't burden future generations or the business's viability. It provides a safety net for navigating corporate governance and leadership transitions with confidence.

What Does a Directors and Officers Insurance Policy Cover?

As every business or organization is unique, so are D&O insurance policies. The coverage you need will depend on your unique circumstances, but D&O insurance may help protect from allegations of:

  • Breaches of fiduciary duties to the company and its shareholders
  • Mismanagement or failing to act in the company's best interests
  • Inaccurate or misleading financial or operational reporting
  • Misrepresentations or omissions in a prospectus during fundraising or IPOs
  • Non-compliance with industry regulations or laws

If a client sues an executive or board member, a D&O insurance policy may cover attorney fees, court costs, administrative costs, and any settlements they might have to pay. 

D&O insurance does not cover certain events, such as:

  • Bodily injury or property damage
  • Intentionally fraudulent, criminal, or wrongful acts 
  • Directors or officers receiving illegal payments or personal gains
  • Fines or penalties imposed by regulatory authorities that are uninsurable by law

Is Directors and Officers Insurance Necessary?

Whether or not you should consider a D&O insurance policy depends on the makeup of your business. Any organization that has a board of directors, several senior executives, or that could be accused of financial mismanagement should consider D&O insurance.

It’s important to note that directors and officers insurance isn’t just for large organizations: small businesses and nonprofits can benefit from it too. Start-ups should also strongly consider a D&O policy, especially if they want to receive venture capital funding.

No matter what your business structure or industry is, D&O insurance exists to protect you from costly litigation. Common claims often involve wrongful termination or breach in fiduciary duty. Protecting your business proactively may help mitigate the risk of these legal challenges.

How Much Does Directors and Officers Insurance Cost?

Every policy is different, whether you do business across Canada or just here in Ontario. The cost of your insurance depends on:

  • Your industry
  • Risk exposure
  • Annual revenue
  • Size of your organization
  • Length of time in business
  • Coverage limits
  • Claims history

The amount you pay will also depend on the type of organization being insured. For example, a nonprofit organization will likely pay less than a large manufacturing company. To get an accurate quote, it's important to speak with one of our qualified brokers to fully understand your needs. Get a No-Obligation D&O Insurance Quote

Frequently Asked Questions

Do I have to have D&O insurance in Canada?

There is no legal requirement for Canadian businesses to have D&O insurance. But like any insurance policy, not having D&O insurance can leave your business in a tough place should someone decide to sue. 

Keep in mind that D&O insurance isn’t just for large or publicly traded companies either. Any organization that has a C-suite or board of directors can benefit from a D&O policy. 

What is the difference between D&O and professional liability insurance?

Professional liability insurance protects you if a client sues you for errors, omissions, or negligence when performing professional services. It protects your business from errors made in good faith by you or your employees.

Directors and officers insurance is a type of professional liability insurance specifically for directors, officers, and other higher-ups in a company. D&O is meant to protect individuals and their assets in the event they are sued for their actions as it relates to your business.

What is not covered by D&O insurance?

Deliberately fraudulent or illegal activities, such as illegal gains or insider trading, are not covered by directors and officers insurance. Other events that aren’t covered include personal injuries and property damage, as those are covered by other policies.