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Directors and Officers Non Profit Groups-Toronto Insurance Solutions

Business Insurance

Understanding Directors and Officers Insurance

Directors and Officers insurance, also known as D&O insurance, is a type of liability insurance that provides coverage to directors and officers of a company in the event that they are sued for alleged wrongful acts. These wrongful acts can include things like breach of fiduciary duty, fraud, or errors in judgment that result in financial losses to shareholders or stakeholders.

Why Do You Need D&O Insurance?

As a director or officer of a company, you have a legal duty to act in the best interests of the company and its shareholders. If you fail to do so, you could be held personally liable for any resulting damages or losses. D&O insurance helps protect you in the event that you are sued for such actions.

What Does D&O Insurance Cover?

D&O insurance typically covers the costs of defending against a lawsuit, as well as any settlements or judgments that result from the lawsuit. It can also provide coverage for legal fees and expenses associated with regulatory investigations or shareholder derivative actions.

Without D&O insurance, directors and officers may be forced to pay these costs out of their own pockets, which can be financially devastating. It's important to work with a knowledgeable insurance broker to ensure that you have adequate coverage that meets your specific needs. To learn more about Directors and Officers Insurance, visit https://torontoinsurancesolutions.com/directors-and-officers/.