Court of Appeal Affirms Ability to “Hang a Director or Officer Out to Dry” and Deny Defense Cost Funding
Trisura Guarantee, who specializes in Directors & Officers Liability and Professional Liability Insurance, recently notified it’s Independent Brokers of the following new court decision, impacting Directors & Officers. The article is written by Jill Shore, an Associate at Dolden Wallace Folick LLP’s Vancouver office. Please (Click Here) to read the article directly.
The result of this court ruling is that Directors should not rely on the Indemnity Agreement in place with the Company to provide a defense for them.
In my opinion, Directors & Officers should insist that the Board they sit on has appropriate Directors & Officers Liability Insurance, from a Specialty Insurer like Trisura Guarantee – before they agree to sit on the Board.
Did you know that the Board members can be held personally liable (ie. With your own assets) for the decisions, management, actions (or in-actions) of the Company/Non-Profit? Or that Directors can be held personally liable for the unpaid Wages and Taxes of the organization – for up to six months per employee?
Are you a Private Company (or Non-Profit) with a Board of Directors who sees value in protecting both the organization and it’s Board member’s assets?
For more information of Directors & Officers legal liabilities or to obtain a quote for Directors & Officers Liability Insurance, please “Collis”.