Directors & Officers Insurance

Directors and officers insurance can protect your company’s top members from having to pay legal costs — should they need to defend themselves of alleged wrongdoing. D&O insurance has become closely associated with broader liability coverage, such as errors and omissions insurance for professional businesses.

Oegema Nicholson and Associates understands the complexities of running your own business. That’s why our brokerage offers a series of insurance products, designed to protect your most valuable assets. If you’re interested in learning more about directors and officers insurance, read our comprehensive guide on how this important coverage can benefit your organization’s most valuable members.

What does D&O insurance cover?

A company’s biggest legal expenses will typically come from defending itself against allegations of wrongdoing. Examples include accusations of misrepresentation by customers, conflicts of interest or ethical breaches. When your directors or officers are forced to defend their own actions, your corporation will have to bear the legal costs. This is where D&O insurance can be particularly helpful.

Although a company’s top brass is often indemnified by their organization’s by-laws, this isn’t the case if the company becomes insolvent. To ensure directors and officers have access to legal defence and are protected in the event they’re found liable, the best option is to invest in D&O insurance.

Depending on your policy, here are some of the items directors and officers insurance may cover:

  • Legal defence costs
  • Settlements and damages
  • Personal assets of a director or officer’s spouse or domestic partner

How does D&O insurance work?

Oegema Nicholson can help you understand your policy, so there are no surprises should you need to file a claim. Although coverage may differ between policies, D&O insurance usually takes effect in the same way across a number of scenarios.

For example, let’s say a company is still in debt when an organization goes into liquidation. Creditors could then go after the company’s director in an attempt to recover outstanding funds. Common allegations by creditors include breach of fiduciary duty, negligence or deliberate misconduct. These creditors will often scrutinize the actions and behaviours of directors or officers — to see if any of them can be held personally responsible.

Once an accusation is made and legal proceedings begin, a claim can be filed under D&O insurance. The coverage would take care of legal expenses and settlements, even if the director is found liable. It’s important to note that D&O insurance will not cover liabilities not listed in the policy.

What are some common sources of liability?

Although claims may vary depending on the unique needs of your industry, here are some common sources of liability for directors and officers:

  • Wrongful dismissal – A company’s employees can hold a director responsible for what they perceive to be wrongful dismissal
  • Breach of employment contract – Should an employee feel the terms of their hiring agreement were not met, a director could be taken to court
  • Breach of intellectual property – A competitor could sue the company’s officers for ‘stealing’ their intellectual property, such as a logo or systems design
  • Shareholder interest – With large sums of money at stake, if shareholders are unhappy with a company’s direction, they could hold the organization’s top brass accountable to protect their investments

How can D&O insurance help my business?

This type of insurance can be useful in attracting and retaining qualified directors and officers — especially in the non-profit sector. Most non-profit organizations do not offer indemnification, which means the personal assets of directors and officers are at risk. By offering D&O insurance to top executives, your company will look like a desirable and long-term place to belong.

Why trust Oegema Nicholson?

Whether your run a national charitable organization or blue-chip corporation, rely on Oegema Nicholson to protect your company’s top executives. A high-quality D&O insurance policy can ensure the legal costs of your most valuable employees are covered. Should a competitor accuse your officers of collusion or a creditor go after your director’s personal assets — have peace of mind knowing one of our liability insurance products will cover a variety of expenses.

For more information on directors and officers insurance, call us at 613-224-1455 or contact us here.

Get a Quote

Testimonials

"I know all my insurance needs are covered with Oegema, Nicholson & Associates. I have been a loyal client for the last 15 years, and I can count of them for my commercial insurance, employee benefits, as well as my personal insurance and finances. Jeff Richer always goes above and beyond to help me with my insurance needs."
O-Omkar Atwal, Owner, Leitrim Home Hardware
"It’s always a pleasure to deal with Oegema, Nicholson & Associates, and I can depend on them for all my insurance needs. I have been a client for several years and whether it’s regarding my personal insurance, or anything to do with our employee benefits or commercial needs, I know I’m taken care of."
R-Rhonda, Capital Dodge
"I would like to thank Carol for everything she has done for me and my family over the years. It is my honest belief that we would not be in the position we are in if it was not for her guidance, expertise and honesty. We can't begin to thank her enough."
T-Tim
"ONA helps me with my personal insurance and my business insurance . They are my one stop shop when it comes to insurance and group benefits. I know I’m covered in all areas. Great friendly service and knowledgeable staff!"
J-James Carriveau, President, Exact Interlock and Exact Properties
"One call to Oegema, Nicholson Associates is all it took. After our basement flooded, within a day or two they had a crew cleaning everything up, taking down the drywall and itemizing everything to be cleaned, thrown out or restored. They had everything in place for us in a timely manner and were extremely patient with me as they talked me through the process and waited for me to make decisions."
J-Jennifer Parks, Stittsville, Ontario
"I’ve been dealing with ONA for over 20 years with my personal insurance, as well as our commercial insurance, and I know I can rely on them for great customer service, and prompt responses. I feel confident not only referring them to my employees, but to our customers as well."
C-Charlene Brunet, President, Dan Murphy Ford
Oegema, Nicholson Financial Inc.
1453 WOODROFFE AVENUE
613-686-6338
Ottawa
1451 Woodroffe Avenue
Ottawa, Ontario K2G 1W1
Manotick
5526 Manotick Main Street P.O. Box 149
Ottawa, Ontario K2G 1W1
Almonte
154 Bridge Street P.O. Box 749
Almonte, Ontario K0A 1A0
Russell
243 Castor Street
Russell, Ontario K4R 1B8
Orleans
3-3809 St. Joseph Blvd.
Orleans, Ontario K4A 0Z8

Request More Information


captcha

All letters should be lowercase.