Directors' and officers' liability insurance - Essential professional coverage

Directors' and officers' liability insurance was introduced by Lloyds of London in the early 1930s. At the onset of the Great Depression, liability insurance coverage was essential to safeguard against huge claims made by desperate investors.

Since then, there have been many directors' and officers' liability definitions, but essentially this type of insurance offers personal financial protection to directors and officers of companies from liability arising from actions connected to their corporate positions.

In recent years, both Fortune 500 and financial companies have chosen to maintain officers' and directors' liability insurance to protect against large liability claims and security fraud issues. Liability has also expanded in definition to provide coverage for the corporation against losses as well.

How does directors' and officers' liability insurance work?

Directors and officers liability insurance provides coverage on a ?claims made? basis, which means the policy will respond only if it was in force at the time of the occurrence. With directors' and officers' liability, definitions of loss include damages, judgements, awards, settlements and defence costs but don't include fines, taxes, or penalties. These are uninsurable matters under the law.

A liability insurance broker can explain the specifics

An experienced HDF liability insurance broker can explain how directors' and officers' liability insurance applies specifically to your situation and how to incorporate it into your personal or business protection plan.

Based in Edmonton, HDF Insurance brokerage serves clients throughout Alberta and British Columbia. Professional protection, corporate growth - we're interested in the same things you are. Contact us today!