Directors’ and officers’ insurance - Business insurance - PMT ROY

Protect your business with directors’ and officers’ civil liability insurance

Company directors and officers are subject to financial and legal obligations as part of their management activities. These activities are governed by the Civil Code of Québec and by the Canada Business Corporations Act and include, among others, obligations of prudence, diligence and loyalty. The company’s chief executive officer is also its representative, so any breach in obligations may result in their personal liability.

The legal fees to defend the CEO could jeopardize the company’s finances. This is why all companies with a board of directors need to purchase this type of insurance.

Specific products exist that meet the special needs of public companies, private companies and non-profit organizations.

Characteristics and advantages of the product

Directors’ and officers’ liability insurance generally covers:

  • Directors’ and officers’ personal liability
  • The commercial entity
  • Lawsuits related to employment practices
  • Liability as a trustee