Directors and Officers Insurance


Why Buy D&O Insurance?

A directors & officers liability insurance policy helps protect the organization from the financial loss of having to defend, and indemnify any party that suffers an insured loss. Furthermore, it helps ensure that your personal and business assets are not affected by your participation on a board for a Not For Profit organization.


In order to protect the organization and yourself, the board must:
1. Examine the operations of the organization and ask what can go wrong, and what harm could result?
2. Identify practical measures that can be taken to prevent such harm from occurring
3. If harm does occur, identify the steps that can be taken to lessen the impact of harm, and pay for any resulting damage or losses.


In a survey done by Chubb Insurance Canada, the average payout for a D&O claim in 2010 was $229,756* with nearly 14% of companies surveyed being part of a D&O claim. It is important to note that defence costs alone can be enough to cripple an organization.


I would highly recommend that every not for profit organization carry a directors & officers liability insurance policy to protect their members. I’m sure your legal counsel will tell you the same thing, never join a board of directors without the existence of this type of policy.


As there are many different policy wordings available, JWK Insurance would be more than happy to help you navigate coverage options.


If you have any questions or concerns, please do not hesitate to contact us.